The project originated at the 1990 Consumer Electronics Show, where Codemasters founders David and Richard Darling were struck by the popularity of the NES in the United States. Programmer Andrew Graham had already developed a prototype called California Buggy Boys — a top-down racing game with a single-screen two-player mode derived from the 1983 game Rally Speedway — which Codemasters used as the foundation after securing a licensing deal with Galoob. The team reverse-engineered the NES hardware without access to official Nintendo documentation. The single-screen multiplayer format, in which the trailing player is eliminated from view when the leader pulls far enough ahead, was a deliberate response to the difficulty of implementing split-screen on NES hardware. The AI used invisible directional arrows to guide computer-controlled vehicles. The game was completed in September 1990, but a last-minute bug — triggered by reversing on the first race — was discovered after buggy ROMs had already been manufactured, requiring a correction device akin to a miniature Game Genie to be installed in cartridges.
Two modes are available. In the Micro Machines Challenge, players race against three computer opponents and must finish first or second to advance through rounds; three failures end the game, with time trials every three races offering additional chances. In head-to-head, two players (or one player against the AI) compete to push all eight on-screen indicator lights to their colour. A light changes to the leading player's colour when that player pulls a full screen ahead of the opponent; a player who has lost all lights loses the match. Game Gear units support two-player link-up or the shared-console method in which one player uses the buttons and the other the D-pad.
Following the NES release, Micro Machines was ported to the Sega Mega Drive (1993), Game Gear (1993), Amiga (September 1993), Master System (1994), CD-i (1994), SNES (1994), MS-DOS (1994), and Game Boy (1995). Mega Drive handling was modified to an on-rails feel, and vehicle sprites received additional rotation frames for smoother movement. The Game Gear version was programmed from scratch to run at 60 fps, with the camera shifted to show more track ahead to compensate for the smaller screen. A sequel, Micro Machines 2: Turbo Tournament, followed in 1994. Both games were bundled for Game Boy Color in 2000. A reboot titled MicroMachines from Infogrames was released in 2002 for PlayStation 2, Xbox, and Game Boy Advance, with a GameCube version in January 2003. The series received a mobile revival in 2016 for iOS and Android.
Reviewers broadly praised Micro Machines for its originality, addictive multiplayer, and inventive environments. Computer and Video Games named it one of the better racing games on the Mega Drive, and Mega magazine called it "destined to become a classic." GamesMaster cited "brilliant" controls and strong two-player execution. Mean Machines Sega described the Game Gear two-player sharing feature as "revolutionary." The One called it "the best two-player racing game we've ever seen." In 1996, Next Generation ranked it 18th on their Top 100 Games of All Time, praising its "heart-pounding, adrenaline-pumping action" and "perfect balance." Total! ranked the SNES version 5th in their Top 100 SNES Games in 1995. The Guardian listed it in June 2014 among the 30 best British video games. IGN placed the NES version at number 31 in their Top 100 NES Games, making it the highest-ranked unlicensed game on the list.