Alcatraz was formed in 1988 from the ashes of the more strangely named "Motley Crue Team", by Metalwar (Code, Music), Helix (Gfx) and PGCS (Gfx).

Metalwar was the mastermind behind most of the first productions of the group, until the time of Mega Demo 2, when new creative members like Hornet of Avengers joined Alcatraz.

After Mega Demo 3, Metalwar started to work on his dream Amiga game, codenamed "Ilyad". This shoot 'em up was eventually released in 1989 by UbiSoft. One year later, Metalwar and Helix decided to leave both the group and the scene, leaving PGCS heading the group.