Taking inspiration from the film Dragonheart, the game started out as a more mature title with a dark and realistic approach, but the direction was shifted to have a more whimsical and light-hearted tone to appeal to a wider market of consumers. Artist Craig Stitt suggested a game about a dragon, and work began on a new game.

Spyro the Dragon started development following the release of Insomniac's debut game, Disruptor, which sold poorly but was generally praised by critics, impressing Universal Interactive enough to encourage them to make a second game. Spyro's abilities as a dragon include fire breath, a head-on charging attack, and a mid-air glide which he can use to scale large distances, all of which must be used strategically to find items and defeat enemies. Spyro the Dragon is an open-ended 3D platformer, featuring large, sprawling levels in which the player must locate collectable items, among which are gemstones, crystallized dragons, and stolen dragon eggs. The first game in the Spyro series, it stars the title character, a young purple dragon named Spyro, and his dragonfly friend, Sparx, who must journey across the Dragon Kingdom to defeat Gnasty Gnorc, who has overtaken the 5 dragon Homeworlds by trapping the other dragons in crystal and turning their hoard of gems into an army of minions. Spyro the Dragon is a 1998 action adventure game developed by Insomniac Games and published by Sony Computer Entertainment for the PlayStation.

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