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Viva Piñata: Party Animals was not particularly well received by the gaming press, despite the appreciation of its vibrant visuals. In the same interview, Kim also noted that the Viva Piñata franchise was important to the success of the Xbox 360 in the casual game space: 'Our aspiration is to win this generation, and in order to do that, we know we have to appeal beyond the core gamer segment'.

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When asked why the studio was chosen, Microsoft VP Shane Kim explained: 'They've got a long history in the industry and we have a ton of respect for their work', referring to Krome's previous efforts on series such as Ty the Tasmanian Tiger and Spyro the Dragon.

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The involvement of Rare, responsible for the original Viva Piñata, was limited to supplying artwork and information about the game's visual style, while Krome retained full control over the design. Viva Piñata: Party Animals was developed by a team of roughly 60 people at Krome Studios, the first Australian studio to develop a first-party game for Microsoft.

There are eight playable characters: Hudson Horstachio, Paulie Pretztail, Fergy Fudgehog and Franklin Fizzlybear, as well as their female counterparts, Hailey Horstachio, Petunia Pretztail, Francine Fudgehog and Petunia Pretztail, featured in the TV series episode 'Hudson's Better Half'. As a result, candy awards are always a combination of these two separate placements, with players required to do well in both event types to guarantee overall victory. The races themselves do not earn players candy, but instead determine a bonus which influences the winnings from the challenge events which follow. Players earn candy based on their performance during the challenge mini-games, with fixed awards for first, second, third, and fourth places. Multiple individuals can play on a single console (causing races to be conducted split-screen), or players can play online via Xbox Live. Games always feature four player characters, although only one of these need be human-controlled. The goal is to be the player who has earned the most candy ('Candiosity') after the final challenge is completed.

Similar to other casual Xbox 360 titles such as Fuzion Frenzy 2, Viva Piñata: Party Animals is framed as a game show, where contestants compete against each other while announcers provide colorful commentary.Ī game of Party Animals consists of three or more race events, each followed by one or more randomly selected challenge mini-games (depending on selected game length).