Dragon Data Limited was set up in 1981 by Mettoy (a toy company famous for the Corgi car brand).  Based in South Wales, Dragon Data launched the Dragon 32 computer on the market in August 1982 (at around the same time as the Sinclair ZX Spectrum).

Following financial difficulties at Mettoy, Dragon Data Limited was spun off as an independent company partly owned by the Welsh Development Agency who engineered a move of production to Kenfig, near Port Talbort in South Wales.

However, games were an important factor at the time, and the poor colour display of the Dragon, coupled with delays in bringing out new versions, hit the company badly, and it was wound up in June 1984.