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Originally, Wattam was going to be published by Sony Interactive Entertainment and developed jointly between Funomena and Santa Monica Studio. However, Sony eventually left the project, and in August 2017 Annapurna Interactive became the new publisher. This led to the game receiving a PC release, rather than being a PlayStation 4 exclusive.
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The Prince from the Katamari series along with Boy from Noby Noby Boy appear as two unlockable characters in Wattam, having originally been created by the game's designer Keita Takahashi.
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In regards to Wattam, designer Keita Takahashi said he was always trying to make a game that "makes people realize that our ordinary life is great".
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