The game was initially announced during PlayStation's "Future of Gaming" online presentation on 11 June 2020, with a release window of 2021.[5][6][7] In August 2021, KO_OP announced a delay of Goodbye Volcano High's release until sometime in 2022. The developers wanted to avoid crunch related to the COVID-19 pandemic, and had already brought in a new writing team from Sweet Baby Inc. in June 2020 to reboot the game's entire narrative direction.[8][9][10] The new narrative direction was largely inspired by the experiences of high school seniors graduating during the pandemic.[11] In November 2022, the game was delayed to 2023.[12] A new gameplay trailer premiered during a PlayStation "State of Play" presentation on 23 February 2023, announcing a release date of 15 June[13] but was delayed to 29 August.[14] Prior to release, demos of the game were showcased at the 2023 Game Developers Conference as part of the "Day of the Devs" selection,[15]PAX East 2023, and at the 2023 Tribeca Festival as part of the "Games & Immersive Experience" selection.[16]
Following the revamped game's showing at PAX East 2023, it was positively received by critics. Kyle LeClair of Hardcore Gamer praised the game, saying its rhythm game elements had the "perfect level of challenge", and that its music was "ear-pleasing". He called the character designs "striking", praising Fang as a "terrific and likeable protagonist" with "great voice acting", and predicting it would be a "deep and unique tale".[11] Rachel Watts of Rock Paper Shotgun wrote that she "had a great time with the demo", comparing it to the adventure game Life Is Strange.[22]
In June 2021, Cavemanon created Snoot Game, an "anti-fangame" intended as a rival version of the game, which was described by a KO_OP developer as "not made in good faith".[23]