In 1993, Accolade signed an agreement with Atari to become a third-party developer for the Jaguar, licensing Bubsy in: Claws Encounters of the Furred Kind from their catalog to be ported and released on the platform.

Fractured Furry Tales garnered mixed reception from critics and retrospective commentarists; some reviewers were divided regarding the overall audiovisual presentation, which they felt did not make use of the Jaguar's hardware and compared it to previous iterations on Genesis and Super Nintendo Entertainment System, while criticism was geared towards its gameplay, controls, level design, and high difficulty.

[3] The player controls Bubsy across 15 levels divided into three chapters, each themed after five fairy tales: Alice's Adventures in Wonderland, Jack and the Beanstalk, Ali Baba and the Forty Thieves, Twenty Thousand Leagues Under the Seas, and Hansel and Gretel.

[1][3][6][7] Other gameplay elements include crates containing beneficial or harmful objects, invincibility t-shirts that render Bubsy immune to enemy contact and attacks but not from environmental hazards, and checkpoints that let players restart at the last location reached after dying.

[3] While it has a password feature that allows the player to resume their last progress, the game's internal EEPROM only saves high scores and changes to the option settings.

[3][9][10][11] The coding work was chiefly handled by programmer Andrew Seed, with Karl West, Martin Randall, Nigel Conroy, and Trevor Raynsford providing additional support.

[10][11][15] In 1993, Accolade signed an agreement with Atari to become a third-party developer for the Jaguar, licensing five titles from their catalog in order to be ported and released on the platform: Barkley Shut Up and Jam!, Brett Hull Hockey, Bubsy in: Claws Encounters of the Furred Kind, HardBall III, and Jack Nicklaus' Power Challenge Golf.

[22][23][24][25][26] Its final title, Bubsy in: Fractured Furry Tales, was later unveiled and featured in a promotional recording sent by Atari to video game retail stores on November 14, being advertised with a December launch window.

[1] Mega Fun's Martin Weidner noted its level design and extensive worlds but concurred with LaMachna, finding Bubsy's controls sloppy and the collision detection imprecise, as well as the game's high difficulty frustrating.

[35] Writing for the German magazine Jaguar, Daniel Jaeckel gave it positive remarks for the graphics but echoed similar thoughts as LaMancha and Weidner regarding the controls and difficulty, in addition to finding each chapter frustrating due to their non-linear level design and numerous enemies.

[4] Play Time's Stephan Girlich regarded it as an "average fare", noting that its high level of difficulty quickly diminished interest.

[42] An editor of German publication ST-Computer did not concurred with the other critics regarding the game's visuals, commending its appealing fairy tale world, colorful backgrounds, and Bubsy's detailed animation.

[7] Flux's Jeff Kitts wrote that "the Jag's huge color palette and graphic capabilities gives Bubsy an impressively rich look.

Author Andy Slaven regarded it as one of the better platform games on the Jaguar, citing its controls and colorful graphics, though noting that it looked and played exactly like the Super NES and Sega Genesis iterations.

Linneman also felt the game failed in utilizing the Jaguar's hardware, noting the simplified parallax background scrolling compared to previous entries, and stated that its visuals did not offer advantage over 16-bit consoles of the era.