Software project management is challenging not only due to the technical requirements associated with creating software, but also in dealing with interpersonal issues that arise during the course of a project. One interpersonal dynamic within software project teams that is rarely discussed is the interaction among the team members themselves. Using social identity theory as a lens, this research explores how subgroups based on individuals’ prior work history could impact the project team. These prior working relationships could be a benefit to the team, or alternatively, could create favoritism among some members of the team. We explore the phenomenon of how prior work history affects the project team’s dynamic in the context of a massive multiplayer online role playing game (MMORPG). Using the results, we offer suggestions for future research and practice to consider the impact of social identity within software project teams.