The gameplay is similar to previous Sonic games: players complete levels while collecting rings and defeating enemies.

Knuckles' Chaotix was planned as a Sonic game for the Sega Saturn, but transitioned to the 32X when it could not be completed in time.

Sonic and Tails were replaced by Knuckles and a group of mostly pre-existing characters; Mighty the Armadillo first appeared in the arcade game SegaSonic the Hedgehog (1993).

There are two other partner characters, Heavy the Robot and Bomb, who hinder players' progress due to their slow or destructive nature, respectively.

[3]: 22  Collecting all Chaos Rings unlocks the "good" ending, in which Sonic and Tails are seen with the Chaotix, who have freed the island from Robotnik.

[13] Development began around April 1994 for the Sega Genesis as an engine test, with the working title Sonic Crackers.

[b][14][15] The prototype featured Sonic and Tails joined by an elastic band of energy;[16][17] the name likely comes from clackers, a toy comprising two balls connected by string.

[15][21][22] The game also adds the characters Mighty the Armadillo, Vector the Crocodile, Espio the Chameleon and Charmy Bee.

[27] Sonic co-creator Naoto Ohshima said he was responsible for repurposing Vector and Charmy, but otherwise had no involvement with Knuckles' Chaotix.

[19] It quickly faded into obscurity,[19] and is now considered a valuable collector's item due to the 32X's commercial failure.

[36] The only rerelease came in 2005, when Knuckles' Chaotix was briefly made available for Mac OS X and Windows computers via the subscription service GameTap.

[37][38][39] The Sonic Crackers prototype ROM was leaked online by a Belgian hacking group in June 1995 and can be played with emulators.

While some fans speculated that the Sonic Crackers ROM was an April Fools' Day hoax,[19] its authenticity has been corroborated by multiple sources, including references in an internal Sega design document and text found in a later Knuckles' Chaotix prototype.

[43] On the other hand, a reviewer from Next Generation found the graphics garish, and felt that the game made "unimpressive attempts to show off".

[49] Next Generation felt the bond was tiring and not truly innovative,[46] and GamePro called it Knuckles' Chaotix's biggest flaw, finding it frustrating and choppy.

[2][5][45] GamePro wrote that the levels, while fairly large, were not populated with enough enemies or secrets, a sentiment echoed by IGN and Mean Machines Sega.

[2] IGN described Knuckles' Chaotix as "a bad game with a good foundation",[2] and in another article, concluded that it was interesting, if flawed.

[41] Game Players found it a major disappointment, saying "other than a few color-enhanced backgrounds, you're gonna wonder why this isn't a Genesis title".

[55] The "Hyper Ring" power-up re-appeared in Sonic Mania (2017)[56] and a recreation of Knuckles' Chaotix's final boss fight was added in a 2018 update.

[53] James Stephanie Sterling felt that all the Chaotix lacked redeeming qualities, calling Vector "Idiot the Crocodile" and Espio "Generic Brooder the Chameleon".