Palladium's vice president of marketing, Rob Halligan, explained that the success of "Pyst" paved the way for "The X-Fools", and noted that the game was being released at a time rife with interest in the supernatural: the news was buzzing with the 50th anniversary of the Roswell incident, the Mars Pathfinder mission, and the impending premiere of the fifth season of "The X-Files". Artist Tom Richmond, who had an ongoing professional relationship with Parroty Interactive, provided some of the game's illustrations. Michael Donovan did voice work for the game.