
Olafsson was born in Reykjavik, Iceland, in 1962 and has a degree in physics from Brandeis University. In addition to writing short stories, novels and plays, he was the founder and former president and CEO of Sony Interactive Entertainment, Inc. where he "was involved in developing the CD and...the PlayStation computer."
"[His novel] Fyrirgefning syndanna (Absolution) was nominated for the Icelandic Literature Prize in 1991 and the short story collection Aldingarðurinn (Valentines) won the same award in 2006...His novel, The Journey Home, will be filmed in 2007, directed by Liv Ullman."
In a 2003 discussion of his dual career as writer and Vice President of Time Warner with CNET, he said, "One form of media still in my mind is best served by traditional methods, and that's storytelling. Books provide a great way for people to tell stories. Movies are the same. Paper is actually a great technology, when it comes to a novel."