KOF '98 was ported to the Neo-Geo CD in 1998 and for the PlayStation in Japan in 1999. A Dreamcast version titled The King of Fighters: Dream Match 1999 was released in 1999, featuring backgrounds remade in 3D. The game was also remade for the PlayStation 2 as The King of Fighters '98: Ultimate Match, which expands the number of playable characters, further tweaks the gameplay and features a third fighting style option.
All the regular characters from the previous game return, along with several characters from preceding installments such as Vice and Mature (Iori's teammates from KOF '96), the American Sports Team (Heavy D!, Lucky Glauber, and Brian Battler) from KOF '94, and the Old Men Team (or Veteran Fighters Team) composed of Heidern, Takuma Sakazaki, and Saisyu Kusanagi, all characters whose last appearances were in KOF '95. Rugal Bernstein from KOF '94 also returns as a Team Edit character, with his alter-ego Omega Rugal (the cyborg version of Rugal from KOF '95) serving as the game's final boss in the Single Player Mode. Shingo Yabuki (who originally appeared in KOF '97) continues as a Team Edit character, but also appears as a mid-boss character during the Arcade Mode. Additionally, the game includes EX versions of certain characters, i.e., alternate versions of characters who use movesets from previous games: Joe Higashi, Ryo Sakazaki, Yuri Sakazaki and Robert Garcia are based on their KOF '94 movesets, whereas Kyo Kusanagi is based on his KOF '95 moveset and Terry Bogard, Andy Bogard, Mai Shiranui and Billy Kane are based on their Real Bout Fatal Fury 2: The Newcomers movesets.
In Japan, Game Machine listed The King of Fighters '98 on their September 1, 1998 issue as being the most-successful arcade game of the month. According to Famitsu, the AES version sold over 22,651 copies in its first week on the market. During its release week, the Dreamcast port of the game sold 58,354 copies in Japan. As of 2004, the sales increased to 104,049. Famitsu magazine scored the Dreamcast port of KOF '98 a 30 out of 40, and GameRankings gave it a 71% based on a total of 18 reviews.