The PEGI system was developed and based on existing systems in Europe. In the drafting of the PEGI assessment form and the shaping of the system organisation, society representatives such as consumers, parents and religious groups have been largely involved.

PEGI has been designed to meet varying cultural standards and attitudes across the participating countries. Member States and is supported by the majority of relevant Member State Government Agencies and all interactive leisure software trade organisations in Europe.

The PEGI system is a voluntary system in which the ratings are carried out by members of the game industry itself. This takes place by means of a self assessment form. After examining a game, the in-house coder uses an intranet to answer a number of questions, after which the rating of the game will be given automatically. For each content category an age is established, based on the answers on the assessment form.

Ratings proposed by publishers are then checked by NICAM. All 16+ or 18+ ratings are checked before a rating is granted. All 12+ and samples of 3+ and 7+ ratings are checked after a rating has been granted. At the end of the process, products concerned are granted by NICAM, on behalf of ISFE, a license to use a specific logo and possibly descriptors as well.