Mastertronic was originally a publisher and distributor of low-cost computer game software founded in 1983. Their first games were distributed in mid-1984. At its peak the label was the dominant software publisher in the UK, a position achieved by selling cassette-based software at the GB£1.99 and £2.99 price-points.

Later diversification included the setting up of US operations to source and distribute their software, as well as an unsuccessful arcade games division (Arcadia Systems). However, it was their decision to market the Sega Master System in the UK that ultimately proved most successful. It resulted in the Master System outselling its rival, the NES throughout the 8-bit era and was cited by some as Virgin Group's reason for investing in the company (and later buying it outright).

As the budget software market declined, the Sega hardware distribution became the dominant part of the business, and the company was eventually sold (and merged into) Sega itself. Although the original company no longer exists, the rights to the name were acquired by another company, Mastertronic Group, formed as a result of a merger of The Producers and Sold Out Sales & Marketing in 2006.

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