He started Cryptic Allusion around 1995 for the purposes of web design consulting. Since that area of the business world began to take off on its own and become crowded, the purpose of the group has been redefined several times over the years, but it has found its calling as an independent game development group. Along with long-time collaborator Roddy Toomim, he officially registered Cryptic Allusion in the state of Texas as Cryptic Allusion, LLC.
In 2000, Dan Potter started the Cryptic Allusion DCDev Project, whose initial fruits of labor were libdream and KallistiOS. Both were toolkits designed to assist hobbyists and independent developers to work with the Sega Dreamcast console, but KallistiOS is now the preferred and active project, and is developed by a group of developers on the SourceForge Free Software development site. Cryptic Allusion DCDev has slowly become GameDev, as they have started to move to other consoles as well.
Dan Potter, through Cryptic Allusion, made an appearance at E3 2001 to distribute DC Tonic demo CDs to the Dreamcast fans at the show. DC Tonic has been well received and has even been reportedly mistaken for an actual commercial demo, though the developers were rushed for time in its production, and the tools used were not at a very high level of quality at the time.
Shortly thereafter, he announced that Cryptic Allusion's next commercial Dreamcast game would be an expansion of the demo game that was included on the DC Tonic demo CD, Tryptonite.
In 2005, he shifted from developing for the Dreamcast to developing shareware for Mac OS X and Windows. His first game was Marbol, a game idea by Brian Peek of Ganksoft Entertainment, originally intended for a Dreamcast release, and demoed for the Dreamcast on the DC Tonic demo CD.