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American educational software and entertainment game publisher best known for Apple II learning programs, adventure games, role-playing titles, and flight simulators.

Last updated August 25, 2026

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Overview

Edu-Ware Services, Inc. was an American software publisher established in 1979 by Sherwin Steffin and Steven Pederson. The company originated in the Los Angeles area and initially focused on educational software for the Apple II, while also developing unconventional games and simulations. Steffin brought academic training in experimental psychology and instructional technology to the enterprise. He wanted computer-assisted instruction to encourage divergent thinking rather than merely reinforce the convergent-answer model that he associated with conventional school curricula. Pederson, who had a stronger interest in games, helped give the company a dual identity: an educational publisher on one side and an experimental entertainment developer on the other. The founders began working from Steffin's Woodland Hills apartment. Early products included Perception and Compu-Read, with Pederson contributing games such as Terrorist and the educational program Compu-Spell. The company also developed its EWS graphics technology to display text on the Apple II's high-resolution screen. Sales manager Mike Lieberman and freelance developer David Mullich later expanded the small founding team. Mullich became especially important to the company's reputation after creating The Prisoner, an ambitious adventure game influenced by the television series and by contemporary concerns about individuality, authority, and conformity. The title became Edu-Ware's best-selling product during the company's early period and helped finance its move from a home-based operation into offices in Canoga Park and subsequently Agoura Hills. Although Edu-Ware's games attracted attention, educational software remained the core business. The Compu-Math programs applied pretesting, post-testing, learning objectives, and measurable progression to elementary mathematics instruction. The Algebra series developed this approach further by allowing learners to select among different cognitive or instructional methods. Its commercial performance eventually exceeded that of The Prisoner and made the series the company's principal source of revenue. Edu-Ware also published the Interactive Fantasies line, whose subjects included terrorism, oil shortages, television programming, and other contemporary social or political issues. This combination of formal instructional design and intellectually ambitious entertainment distinguished Edu-Ware from many early personal-computer publishers. By 1982, however, the founders faced rising marketing costs and stronger competition from companies such as Davidson & Associates and Spinnaker Software. In July 1983, Management Science America acquired Edu-Ware in a transaction described as being valued at approximately $1.5 million in cash and MSA stock, together with a share of future earnings. MSA viewed the acquisition as an entry into the expanding educational-software market. The integration proved difficult. Marketing responsibility moved to MSA's Peachtree Software division, and the Edu-Ware identity was increasingly absorbed into standardized Peachtree packaging and promotion. Sherwin Steffin objected to the treatment of the brand and was dismissed in August 1984. Steffin sued MSA the following month, alleging misleading representations connected with the acquisition, unpaid future compensation, interference with his promised employment, and conduct that reduced Edu-Ware's sales and royalty-related payments. MSA subsequently announced plans to sell its retail microcomputer-software group after reporting losses across the unit. In March 1985, Encyclopaedia Britannica acquired DesignWare and Edu-Ware from MSA. The Edu-Ware development group was disbanded, and DesignWare assumed responsibility for development and marketing. The original company therefore ceased to operate as an independent publisher, although its Apple II software and design ideas remained part of early personal-computer and educational-software history.

History

Sherwin Steffin and Steven Pederson formed Edu-Ware Services, Inc. in 1979 after meeting at UCLA. Steffin had worked in experimental psychology and instructional technology and was interested in designing computer-assisted instruction that promoted exploratory and divergent thinking. Pederson was more attracted to games and interactive entertainment. Their complementary interests shaped Edu-Ware's product strategy from the beginning: the company would produce structured learning software while also exploring more unconventional forms of Apple II entertainment. The founders initially operated from Steffin's apartment in Woodland Hills, California. Perception and Compu-Read were among the early educational products. Pederson developed or contributed to Terrorist and Compu-Spell, and his work on Compu-Spell included an early version of Edu-Ware's EWS graphics engine, which generated text on the Apple II's high-resolution display. The company later hired Mike Lieberman as sales manager and worked with David Mullich, first as a freelance developer and then as a staff member after he completed his studies at California State University, Northridge. Mullich's The Prisoner became the company's most recognizable early game. Its subject matter and structure were unusually serious for the period, and its commercial success allowed Edu-Ware to move into formal offices in Canoga Park by the end of 1980. The company later relocated to a larger site in Agoura Hills. Edu-Ware's games were marketed as Interactive Fantasies and frequently addressed real-world themes. Terrorist examined global political violence, Windfall addressed the oil crisis, and Network focused on television programming. These titles helped establish Edu-Ware as an experimental publisher whose games could be topical, satirical, and intellectually demanding. Education nevertheless remained the company's principal business. The Compu-Math line used instructional objectives and pretest/post-test structures to teach elementary mathematics. The Algebra series expanded the model by giving learners choices about how they approached the material. The series became more commercially successful than The Prisoner and was reported as Edu-Ware's most important revenue source. The company's formal learning methods received positive attention but also criticism from reviewers who found some programs overly austere and insufficiently playful. Edu-Ware was also involved in a significant missed opportunity in the early adventure-game market. Ken Williams reportedly approached the company with Mystery House, an early graphical adventure. Negotiations did not produce a deal, and Williams founded On-Line Systems instead. That company later became Sierra On-Line, a major adventure-game publisher. Edu-Ware's decision not to publish Mystery House became notable in retrospect because Sierra's later success was strongly associated with graphical adventures. By 1982, increasing promotional costs and competition from educational publishers including Davidson & Associates and Spinnaker Software made the company difficult for its founders to manage alone. Management Science America announced an acquisition in July 1983. The transaction was described as involving cash and MSA stock valued at $1.5 million, plus a percentage of future earnings. MSA hoped Edu-Ware would provide an entry into educational software, but the integration weakened the acquired brand. Peachtree Software, MSA's accounting-software division, took over marketing, and Edu-Ware products were placed in packaging that made them resemble other Peachtree offerings. A widely discussed 1984 product presentation showed Edu-Ware titles among dozens of similarly packaged products, reducing the visibility of the Edu-Ware name. Steffin protested MSA's handling of the company and was fired in August 1984. In September he filed a lawsuit alleging fraudulent representations to Edu-Ware shareholders, failure to make promised future payments, violation of a post-sale employment arrangement, and deliberate or negligent actions that harmed sales. His allegations included withholding products, reducing advertising, and discontinuing use of the Edu-Ware identity. These claims are recorded as allegations rather than established findings in the available reference material. MSA soon sought to sell its retail microcomputer-software businesses, including Peachtree Software, DesignWare, and Edu-Ware. In March 1985, Encyclopaedia Britannica announced that it had acquired DesignWare and Edu-Ware for an undisclosed amount. The Edu-Ware development team was to be dissolved, while DesignWare assumed development and marketing responsibilities for the products. The independent Edu-Ware company therefore disappeared after only a few years, although its educational design concepts, topical games, and Apple II titles continued to attract historical interest. Afterward, Steffin and Lieberman established BrainPower, Pederson pursued other ventures, and Mullich and other former employees formed Electric Transit after acquiring two unfinished projects.

  • 1985

    Encyclopaedia Britannica acquires Edu-Ware

    [1]

    Britannica purchased Edu-Ware and DesignWare from MSA; Edu-Ware's development group was disbanded.

  • 1984

    Edu-Ware loses its independent brand identity

    [1]

    Marketing moved to MSA's Peachtree division, whose standardized packaging and promotion made Edu-Ware products less distinguishable.

  • 1983

    Management Science America purchases Edu-Ware

    [1]

    MSA acquired Edu-Ware as part of a strategy to enter the educational-software market.

  • 1981

    The Algebra series advances Edu-Ware's instructional model

    [1]

    Edu-Ware released the first Algebra program, extending its use of learning objectives and learner-selected instructional approaches.

  • 1980

    The Prisoner becomes a breakthrough title

    [1]

    David Mullich created The Prisoner, an ambitious adventure game that became Edu-Ware's best-selling product during its early years.

  • 1979

    Edu-Ware is established

    [1]

    Sherwin Steffin and Steven Pederson founded Edu-Ware Services, Inc. in California to publish educational software and games for the Apple II.

Products and positioning

Edu-Ware positioned itself between serious computer-assisted instruction and intellectually ambitious entertainment. Its education products emphasized explicit learning objectives, assessment, and user choice, while its games used contemporary political, social, and philosophical subjects rather than relying exclusively on conventional fantasy or arcade themes.

  • Educational software

    Compu-Math

    A series of elementary-mathematics programs designed around explicit learning objectives, pretesting, post-testing, and measurable progression. The series represented Edu-Ware's attempt to apply formal instructional design to personal-computer software rather than treating educational programs as simple drill utilities.

  • Educational software · 1981

    Algebra

    An instructional series that allowed learners to choose among different approaches to learning algebra. It developed Edu-Ware's interest in learner-directed instruction and became more commercially successful than The Prisoner, serving as a major source of company revenue.

  • Adventure game · 1980

    The Prisoner

    David Mullich's experimental Apple II adventure game and Edu-Ware's best-known individual release. The game used themes of identity, authority, and conformity and helped establish the company's reputation for serious, unconventional interactive entertainment.

  • Strategy game

    Terrorist

    A strategy-oriented game created by Steven Pederson that addressed the politically charged subject of terrorism. It exemplified Edu-Ware's practice of using contemporary real-world issues as the basis for interactive simulations and games.

  • Educational software

    Compu-Spell

    An Apple II educational program focused on spelling and associated with the early development of Edu-Ware's EWS graphics technology for high-resolution text display.

  • Game label

    Interactive Fantasies

    Edu-Ware's label for a group of topical games and simulations. Titles under the label addressed subjects such as global terrorism, oil shortages, and television programming, reflecting the publisher's preference for socially grounded and intellectually challenging entertainment.

  • Flight simulator

    Rendezvous: A Spaceflight Simulator

    A spaceflight simulation associated with Edu-Ware's interest in technically oriented interactive software. It was among the projects connected with the company's development team and later with former employees who established Electric Transit.

Controversies

  • 1984

    Steffin's lawsuit against Management Science America

    After being dismissed, co-founder Sherwin Steffin sued MSA. He alleged that MSA had made fraudulent representations to Edu-Ware shareholders, failed to deliver promised future payments, breached an employment understanding, and damaged Edu-Ware by restricting product releases, reducing advertising, and abandoning the Edu-Ware name. The available reference describes allegations and does not establish the outcome.

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Brand decisions

  • 1985

    Encyclopaedia Britannica acquires Edu-Ware from MSAM&A

    Background

    MSA planned to sell its retail microcomputer-software group after the group, including Peachtree Software, DesignWare, and Edu-Ware, incurred losses.

    Action taken

    Encyclopaedia Britannica purchased DesignWare and Edu-Ware for an undisclosed amount and assigned product development and marketing to DesignWare.

    Aftermath

    The Edu-Ware development team was disbanded and the brand ceased operating as an independent publisher.

  • 1983

    Edu-Ware accepts acquisition by Management Science AmericaM&A

    Background

    Rising marketing costs and stronger competition made it difficult for the founders to continue operating the company independently. MSA sought an entry into educational software.

    Action taken

    MSA acquired Edu-Ware in a transaction described as including cash and MSA stock valued at approximately $1.5 million, together with a percentage of future earnings.

    Aftermath

    Marketing was transferred to MSA's Peachtree division, and the Edu-Ware identity was progressively weakened through standardized packaging and reduced brand distinction.

    Reported transaction valuation. $1.5 million (1983 acquisition announcement; stated value included cash and MSA stock, plus a percentage of future earnings)

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