Battle Beast

Battle Beast is a 1995 fighting game featuring small cute animals that transform into robotic beasts.

Plot
The evil Toadman is breeding toads and having them overrun the city. The battle beasts, cute pets normally, but vicious home protection robots when needed, protect the city. Toadman infiltrates the factory where the beasts are made in order to reprogram the beasts to fight each other instead of his toads. He is caught mid act, so he only got to the "fight each other" part.