ESP was established 1975 as the first garage factory and professional guitar shop in Japan by Hidesato Shiino (producer of guitar and related products who had succeeded in Greco, Aria Pro II and Fernandes) , Naotake Shibuya (a one-time executive director of Fernandes Inc.) and Katsumi Omote (founder of Moon Guitar Cooperation Inc.).

ESP was an epoch-making shop.  They eliminated conventional distribution channels and interacted directly with customers.  They not only sold guitars but also took orders for repair and modification.

The first shop was in Shibuya Tokyo.  Its building was re-use of clinic and utilized clinical room arrangement for shop layout.

Mr.Shiino resigned in 1977 because of disagreement between him and other management members who intended business expansion.  And he established Guitar Salon PACO.  Mr.Omote and Kazuhiko Nyui(present representative director of PGM) also left ESP and founded Moon Guitar Cooperation Inc. and PGM(Professional Guitar Manufacture) together.

ESP started branch store in America in 1981 and has been aiming global market.  From the world market view, ESP is the most famous and largest scale electric guitar company in Japan at present.