The game's characters and mechanics were designed by Simon Keating in his first-ever video game project.

It was first pitched to Nintendo as a prototype for a 3D platform game in which the player controlled Yoshi from Nintendo's Super Mario series, but was ultimately rejected by Nintendo, ending the relationship and prompting Argonaut to retool the game as an original property. The game initially started development shortly following a successful relationship between Argonaut and Nintendo, with the former creating a processing chip for the Super Nintendo Entertainment System called the Super FX that was used in games such as Star Fox to display 3D polygonal environments. Taking place in the fictional setting of the Gobbo Valley, Croc: Legend of the Gobbos follows a young crocodile named Croc, who sets out to rescue a group of furry creatures known as Gobbos from the evil magician Baron Dante. It was released in North America in September 1997 for the Sony PlayStation, and later that year for the Sega Saturn and Microsoft Windows.

Croc: Legend of the Gobbos is a platform game developed by Argonaut Games and published by Fox Interactive.

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