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The Kingdom fell into severe decline after the despot Dr. Ivo Robotnik managed to take over the Kingdom of Acorn and spread his empire throughout Mobius. The Kingdom of Mercia was eventually overrun by Robotnik's forces, and Robotnik's sub-boss known as the High Sheriff was installed to ensure any rebellions were quelled. Those who managed to escape capture and roboticization at the hands of the High Sheriff and his Robian followers moved to Deerwood Forest, where Rob O' the Hedge became king. Rob also led a group of Freedom Fighters known as the Crazy Kritter Freedom Fighters in an attempt to end the High Sheriff's rule. The group's efforts failed, and all of the members of the Crazy Kritters except Rob were captured and roboticized. (StH: #58, KtE: #12)
After the Lost Tribe of Albion was kidnapped by roboticized Mobians from Mercia, Knuckles traveled to the Kingdom to save them. Along with Rob O' the Hedge, Sonic and Tails, he rescued all the prisoners and members of the Lost Tribe.
After Robotnik died and the High Sheriff was apprehended, the Kingdom seemed to regain some of its territory and freedom, despite the coming of Dr. Eggman. In particular, the mass de-roboticization of the Mobians by the Bem allowed the citizens of Mercia to go back to their free and peaceful lives. Contact continued between the Kingdom of Mercia and the Republic of Acorn, and Rob remained the region's king. (StH: #88, #111, #195)
The Kingdom of Mercia consists predominantly of forests (such as Deerwood Forest) and rivers. Its citizens generally use Old English vocabulary. It appears to be based on the folkloric England from the tales of Robin Hood.
The real world Mercia was an Anglo-Saxon kingdom in what is now the English Midlands. The term is sometimes still used to refer to the area.
The names Snottingham and Knottingham are derived from the city of Nottingham, which is within the English Midlands and is frequently cited as the setting of the tales of Robin Hood, as well as the words snot and knot (as in Knothole) respectively.
- Kingdom of Mercia at Mobius Encyclopedia, the Archie Sonic wiki