In late 2008, the band entered a hiatus, with Malakian citing a lack of enthusiasm and "his heart not being into touring", as the primary reasons for the band's cessation. In April 2010, the band announced a gig The Troubador, Los Angeles on May 2, 2010. On August 20,2010 Scars on Broadway played a sold out show at The Avalon. The first 20 in line received signed vinyl copies of their song "Fucking" and the first 500 in line received a vinyl copy of the same song..

In 2003, Daron Malakian (lead guitar and vocals), Greg Kelso (rhythm guitar), Casey Chaos (vocals), and Zach Hill (drums) recorded a demo tape entitled "Ghetto Blaster Rehearsals" credited to the name Scars on Broadway. However, in 2007, an official letter appeared on the band's website that stated that these tracks are not in any way affiliated with Malakian's later project Scars on Broadway. Incidentally, these demo sessions produced "BYOB," which would be a major hit for System of a Down in 2005.

In December 2005, Malakian stated in an interview that he "could release ten solo records tomorrow." and that he has"tons of material laying around. After these albums, - (Mezmerize and Hypnotize) - I'm gonna go off to learn how to brain and do something on my own, just like Serj. And no, System of a Down is not breaking up. We're just gonna do like KISS and put out our own solo records."

Following System's hiatus, Malakian announced his latest project — Scars on Broadway — a band which would include System of a Down bassist, Shavo Odadjian, and himself. Ultimately, Odadjian was not involved with the band, and instead System drummer, John Dolmayan became a member.

After Malakian and Dolmayan experimented with different musicians, for a period of nine months in 2007 - 2008 the band took form and forged its sound in intense rehearsals and recording sessions under Malakian’s direction, at his home studio and Sunset Sound; with musicians Danny Shamoun on keyboards, Dominic Cifarelli on bass, and Franky Perez on guitar and backing vocals. In keeping secrecy from the press, the additional members adopted the title “the unofficial members”.

The band's website featured a countdown timer, counting down to 15:00 PST of March 28, 2008. Additionally, above the timer, in quotation marks was the phrase "They say it's all about to end." When the countdown ended, the song "They Say", was made available on the site. The song is also available for listening on the band's official MySpace page. It is no longer available as a free download.

Scars on Broadway played their first live show April 11, 2008 at the Whisky A Go Go in Los Angeles, CA. They have also confirmed to be playing with Metallica at KFMA Day 2008 in Tucson, AZ. On January 22, 2008 Scars on Broadway were announced to be performing at the Coachella Valley Music and Arts Festival on April 26, 2008. On May 17 of that year, the band also performed at the sixteenth annual KROQ Weenie Roast. Additional tour dates were announced on their official website on the 30th of May .

On May 2, 2008, Scars announced on their official website that their debut album, Scars on Broadway, would be released on the 28th and 29 July.

Starting from May 28, 2008, "They Say" is available for purchase at iTunes Music store. On July 20, 2008, "They Say" was featured as iTunes' Free Single of the Week. On June 20 Scars on Broadway released a teaser for their single "They Say" on a MySpace bulletin. In the teaser, the video is said to premiere soon.

"They Say" was also included in the end of 2008 Kerrang! compilation album, amongst other popular and new rock music by various artists.