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Extasy Records was founded in April 1986 in Tokyo, Japan by Yoshiki Hayashi. The company was originally made to produce X, which would later be known as X Japan. He decided to produce his band himself not because he chose to, but more because the other recording labels around at the time were afraid that the band would be too "risky" to sign. After releasing their first album on Extasy however, major labels offered contracts and X left Extasy for CBS Sony.

After the establishment of the company many other struggling bands came to Yoshiki for help. Soon, the company was producing other bands and releasing albums. On September 30, 1988, all the bands that where under the label got together and performed a huge concert at Osaka Bourbon House Hall called Extasy Summit Festival. This performance would be repeated a number of times at various places for a number of years, and even included bands that had graduated from Extasy to major labels such as Zi-Kill.

Yoshiki would continue producing other bands and would remain with the company. In 1999, the label signed perhaps their biggest band since X , Dir en grey.

In 2000, a year after Yoshiki moved to Los Angeles, California, USA; he started to create Extasy Records International and Extasy Records North Recording Studios. These were branch outs from the original company and would produce not only Japanese artists, but American artist too. The International Studio would sign artists like: Laura Dawn, Abandoned Pools, Kidneythieves, Sub.bonic, and Aja Daashuur.

Before Yoshiki took over the recording studio in North Hollywood, it was called One on One Recording Studio and belonged to Jim David; Bill Dooley was the director of recording. Later the studio was sold and renamed to Brooklyn Recording before Yoshiki bought it in 2000.

The studio was famous for its large recording rooms and private lounges. It was also one of the first facilities to combine SSL & Vintage Nerve Technology. This feature attracted acts such as Metallica, Van Halen, and Jane's Addiction. After Yoshiki bought Brooklyn Recording, he changed the name, but kept Bill Dooley as the director of recording.

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