Color prediction game development involves creating a virtual betting game where players predict the sequence of colors. The game typically involves selecting colors like red, green, and blue and placing bets on the color they believe will appear next. The game generates a random outcome using a Random Number Generator (RNG) system, ensuring fairness. The game design includes features such as customization options, intuitive user interfaces, real-time color events, user registration and profiles, live leaderboards, social media integration, and secure payment gateways.