Matrix: Gridrunner 2, began development shortly after the runaway success of it's predecessor, Gridrunner. Jeff Minter would again develop the game first for the Commodore VIC-20 computers, this time though targeting memory expanded machines, allowing for new enemies and gameplay features not possible in the previous game. This game would also begin Llamasoft's now infamous camel motif within it's games.

When originally released in North America for Commodore computers, the title was renamed to "Attack of the Mutant Camels" which, confusingly, is the same title is used for the unrelated Llamasoft title, Attack of the Mutant Camels, both which were released in 1983.