Chunsoft announced the development of
Otogirisou in April 1991. The game was developed at the same time as
Dragon Quest V (1992). The game's director
Koichi Nakamura had previously been involved with the development of the first three
Dragon Quest games, and recalled that he was dating a girl at the time who did not play video games. When she tried playing the games that Nakamura had helped develop, she expressed that she did not really understand the games or what was supposed to be fun about them. This led to Nakamura thinking he should make a game that he described as "for people who haven't played games before." He thought of older
text adventures, ultimately deciding that would be too complicated for a new audience. Programmer Manabu Yamana said prior to the idea of the sound novel, the team attempted a game that would contain elements of
Dragon Quest,
Sim City (1989), and
Populous (1989) which he said "didn't work at all." ''. The game initially was developed with no background graphics. In contrast to the lighter comical action games and fantasy games at the time, Nakamura had worked on previously, the game was set in the real world and made in the horror genre. He described the influence of developing a horror-themed game at the time lied in the video game
Sweet Home (1989), saying: "there weren't any real horror games. But right around the time I was thinking of making
Otogirisō,
Capcom created
Sweet Home. The thing that was really interesting about
Sweet Home was that it so scary that you didn't want to continue playing. I wanted to create an experience where the user would be too afraid to press the button to continue the story, too." Shukei Nagasaka, a screenwriter, novelist and television writer, wrote the original story and script for
Otogirisō. It was his idea to have players be able to move between narratives during development. Nakamura then began developing a game that would be simplified further by having it be decision-based, where the player reads the story and chooses different options at branching points to give players a certain level of interaction with the game. He said that would make a game "anybody could pick up, and maybe it would also lead them to playing other games in the future." As the price of the game was about 8,800
Japanese yen which was roughly the price of ten books, the game was made to include multiple narratives. Nakamura said the stories in
Otogirisō ended up getting larger than they had initially imagined, making it difficult to test to make sure the narrative flowed appropriately and that sound effects went off at the correct time in the story. Initially, the game was developed as text on top of a paper texture graphic. When the game was first shown at the
Shoshinkai trade show, it still contained its paper texture and occasional animations. The response at the trade show from distributors and magazine companies were that it would be hard to sell without more graphics, leading to about 20 graphics made for the backgrounds in the game. The addition of adding illustrations and background art to the game delayed for about a year. ==Release==