In 1983 IBM (International Business Machines) approached Sierra with regard to their latest computer, the IBM PC Junior. They asked a cash-strapped Sierra to build a game that would display their latest computer's capabilities upon release in 1984. That game became King's Quest, Sierra's first 3D Animated adventure game, introducing Sierra's AGI engine. While the PC Junior itself was short-lived, King's Quest went on to save Sierra from imminent bankruptcy following the video game crash, thanks to the easy portability to other platforms and success of the game.

King's Quest was originally released in a grey plastic IBM case. However it was not the only Sierra game published by IBM. Sierra also ported Hi-Res Adventure #2: Wizard and the Princess, originally released in 1980 for the Apple II, as well as lesser-known arcade games, such as Crossfire and Creepy Corridors (which it renamed to Mineshaft).