The game's star and namesake is the Chocobo, with other figures from the Final Fantasy series, such as Mog the Moogle, the Black Mage, and Cid being part of the cast.

[2] Chocobo Racing received generally average reviews, with critics citing its low quality in several aspects of gameplay.

In Grand Prix (GP) Mode, the player races computer-controlled opponents in four selected tracks of their choice.

[8] There are a total of ten tracks, two of which have to be unlocked by playing the story mode: Cid's Test Track, Moogle Forest, The Ancient Gate, Mythril Mines, The Black Manor, Floating Gardens, Gingerbread Land, Vulcan-O Valley, Fantasia, and F.F.VIII Circuit.

[9] While racing, the player can accelerate, brake, reverse, activate Magic Stones, or use a "special ability" using the game controller's analog stick and buttons.

Before the start of any race, the player's character can receive a speed boost by tapping the Accelerate button with precise timing during the countdown.

During a race, the player can only activate the chosen special ability when the meter in the upper left-hand corner of the screen is full.

The Story Mode is narrated by Cid and includes nine chapters in a pop-up book fashion with FMVs.

The companions want to know the legend behind the Magicite shards; the White Mage agrees to tell them on the condition that they race her in the Floating Gardens, with the story as the winner's prize.

[22] The convergence of all eight shards of the Magicite crystal fulfills Ming-Wu's prophecy, and the gate to Fantasia, the Land of the Espers, opens.

[25] Upon completion of the Story Mode, players are assigned a number of points determined by their performance, with a maximum of one hundred.

The point value is distributed among five parameters: Max Speed, Acceleration, Grip, Drift, and A.G.S., which determines how fast the racer's ability gauge charges.

[6] The first demonstration of Chocobo Racing was at the Fall Tokyo Game Show '98; it was then unclear if there would be a North American release.

[3] Other reviewers agreed, calling it "a tired rehash" due to its colorful but unpolished graphics, crude track designs, and poor controls.

[2][40] Daniel Erickson of NextGen called it "kart-racing fare" that is standard but lacks the deathmatch-type courses that made Mario Kart popular.

[35] 1Up.com's Final Fantasy Retro Roundup stated that it was a "decent game" ruined by the necessity of steering with a D-pad, and was rated "Not Worth It".

[2][40] It was also called too easy, with story mode lasting only two hours and there being limited replay value except for the unlocking of secret characters and courses.

[45] However, in October 2013, Takashi Tokita, director of the original Chocobo Racing, confirmed that the project had been cancelled, noting that had he been part of its development process, he "would have made sure that it came out".