Munch's Oddysee was originally going to be released for the PlayStation 2, with different level layouts, enemies, cutscenes, and areas, but was scrapped and put on the Xbox.

The idea to move the game to Xbox was based on the development team not only wanting to use a more powerful console, which would allow them to flesh out the world better, but also thinking it would be a better long term plan to publish the games on the console. Microsoft even worked with Oddworld Inhabitants to help make the Xbox better for them to work on it.