When Damage Studios was started (Officially Oct 9, 2002), myself and the other 2 co-founders spent some time trying to come up with a name for the company that conveyed who we were as well as trying to tie that name into Video Games.
I remember sitting in my living room on Twin Peaks in San Francisco spending about 2 hours with the other co-founders in front of a mobile whiteboard trying to come up with something we all liked.
At one point during the discussion Chris DiBona mentioned using some combination of all the co-founders names. We ended up writing our names on the board as such:
Anthony Guntharp Chris DiBona San Mehat
After playing around with some variations someone put up:
Dibona Mehat Guntharp
Which if you take the first letters of all the founders last names comes out as DMG. DMG is an abbreviation of the word Damage and is used primarily in role-playing games and computer video games in general.
And that’s how Damage Studios got it’s name.