In May 1991, after failing to develop a CD-ROM-based add-on for the Super Nintendo Entertainment System with Sony, Nintendo signed a deal with Philips to develop the add-on. However, after seeing the negative reviews of the Sega Mega-CD, Nintendo no longer considered the add-on profitable anymore, and the project was stopped entirely. As part of dissolving the deal, Nintendo gave Philips the license to use five of their characters, including Mario, Luigi, and Princess Toadstool, to be featured in their games for the CD-i. Philips used the characters to create games for the CD-i, with Nintendo taking no part in their development except to give comments on the look of the characters. The "Mario" characters were going to be used in "Super Mario's Wacky Worlds", but the game was cancelled with only some prototype versions being programmed. While "Wacky Worlds" was planned as a CD-i adaptation of the side-scrolling platformer video game "Super Mario World", "Hotel Mario" was made into a puzzle game in which level areas were limited to a single screen. Unlike the "Legend of Zelda"-related games also for the CD-i, the game was not developed by a third-party company, but by Philips' development team Fantasy Factory.