His initial desire was to create a 3D game,[17] though the technology of the time made full 3D environments impossible.

While Suzuki was doing research for the game, he admired the riding style of Freddie Spencer, who had just become the youngest person to win a motorcycling world championship at 21 years old.

That's the reason I wanted to make it – Freddie Spencer, he rode a Honda bike, and I loved the way he hung on!

Suzuki had additional features he wanted to implement that could not be done due to cost, including a gyroscope to simulate motorcycle acceleration and deceleration.

Kawaguchi made use of the hardware's PCM sampling and added drum samples to use Hang-On's Yamaha YM2203 sound chip to its maximum potential and create a more realistic soundtrack featuring rock music, which was uncommon in arcade games at the time.

[23] Kawaguchi did not program his own music into the game; he instead wrote out his soundtrack by hand, made a demo, and gave that to the sound programmer.

[3] It was introduced to the public by the company's American arcade subsidiary, Sega Enterprises USA, headed by Tom Petit.

Previously, Sega Enterprises USA had focused on selling refurbished arcade cabinets, and before the release of Hang-On, Petit was concerned that his division would be shut down due to competition when he was summoned to Japan to meet with Sega president Hayao Nakayama in 1985.

The success of Hang-On's arcade cabinets, both upright and deluxe, were so great that the company struggled to keep up with demand.

However, the game was impacted by piracy, with Sega estimating 20,000 to 30,000 counterfeit arcade machines sold illegally.

Mike Roberts and Steve Phipps of Computer Gamer magazine called it "one of the best arcade games ever" with particular praise for the bike cabinet and physical controls.

She called it the most realistic arcade game to be released, citing the need to tilt the bike and the placement of the throttle and brake controls being where they are on a real motorcycle.

She said it "combines the superb graphics of a Pole Position style race with the physical act of riding a bike".

[9] Sinclair User praised Hang-On for its simple-yet-fun gameplay, responsive controls and unique tilt-based arcade cabinet.

[45] Computer and Video Games and Mean Machines reviewed the Master System port and scored it positively.

[13] British magazine Sega Pro called the Master System port "a damn fine racing game".

[46][47] A polygon-based sequel developed by Genki was released for the Sega Saturn, named Hang-On GP.

[53] Sega Enterprises USA’s Tom Petit credited Hang-On with helping the North American arcade market recover during the late 1980s with its "high level simulation" technology.

[54] Hang-On and Out Run have both been credited by Famitsu with helping to lift the arcade video game industry out of its slump during the mid-1980s,[55] and Play Meter also credit Hang-On and other Japanese video games with helping the US arcade market recover from 1985.