Those devices extended the capability of Amiga CD32, allowing it to utilize hardware such as an external 3.5" floppy disk drive, hard disk and IBM PC keyboard. An Amiga CD32 could be turned into a de facto Amiga 1200 via the addition of 3rd party packages. The SX-1 appeared to have been designed around Commodore's mechanical specs and not the actual production units – it did not fit very well and required an internal 'modification' to fit properly. Consequently, the SX-1 could be jarred loose if the console was not handled gently. The upgraded SX-32 expansion pack (which included a 68030 25MHz processor) solved these problems.

CDs created for the CD32 conform to ISO 9660 level2, mode1, although the Rock Ridge and Joliet extensions are not compatible.

At launch the CD32 was bundled with two games, 'Diggers', a new game from Millennium Interactive, and 'Oscar' from Flair. The CD32 was capable of running most of the titles developed for the Amiga CDTV multimedia device (differences in CPU speed and Kickstart version prevented some of the earlier CDTV titles from running).

The console is widely regarded as unsuccessful, with Commodore filing for Chapter 11 just a year after its release. One possible reason for this was the relative lack of original games developed for the machine. Most CD32 titles were simply A1200 games on a CD, with the occasional full motion video sequence or CD audio tracks added on.

However, a large fanbase carried over from the success of other Amiga computers, and several notable titles, such as Microcosm, Liberation: Captive 2, Simon the Sorcerer and Super Stardust prevented the console from sliding into total obscurity.