Destruction Derby 2 was released on the PlayStation in North America in November 1996, and in Europe on 18 January 1997. Edmondson decided against implementing features such as speed boosts and collectibles because he did not want the game to feel like an arcade game and wanted the car physics to be as realistic as possible. For Destruction Derby mode, more varied arenas were implemented to take advantage of a new physics system developed by Reflections. The normal race mode was implemented simply because the engine could support running a traditional race.

Edmondson came up with Stock Car Racing after watching the Banger World Finals at Arena Essex and noticing that there were some cars simply racing rather than trying to destroy each other. This was hard to balance, but it proved possible to win with each of those strategies. Wrecking Racing was meant to enable a broad range of strategies, such as keeping up but watching out for destruction opportunities, destroying the cars in front, and destroying everything without concern for position.

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