By 2004, Microsoft had not found great success with the
Xbox console in Japan compared to the North American and European markets. To try to cater to these audiences, Microsoft developed games that were designed towards Japanese audiences with the potential to bring these to Western markets if they were successful. While early development began, Microsoft Game Studios Japan were shown an early development demo of
Gears of War, where
Yukio Futatsugi noticed the use of
normal mapping, and decided to use it within
Phantom Dust.
Phantom Dust was revealed alongside
Blinx 2 in June 2004 at Japanese press events. Lead director
Yukio Futatsugi and his team developed an English version concurrently with the Japanese version, and the English localization was included in the Japanese release. A United States release had originally been planned until August 2004, when Microsoft announced the U.S. version's cancellation, but left open the possibility of U.S. sales if Western demand was high enough.
Xbox One reboot While the original release of
Phantom Dust was not a strong commercial success, Microsoft still valued the property, championed by
Microsoft Studios' vice president
Phil Spencer. Spencer had praised
Phantom Dust and felt the mechanics in the original Xbox version were "ahead of their time" and could be better released in more modern gaming systems. In a November 2013 interview regarding the just-released
Xbox One console, Spencer stated that discussions for a possible reboot of
Phantom Dust for the new console were ongoing. Around early 2014, Microsoft had been evaluating its older software properties and determining which ones could be brought inexpensively to the new console. Darkside Game Studios, a small studio that had assisted in a number of large titles, including the then-recent
Sunset Overdrive, but now looking to develop a title on its own, started discussions with Microsoft about taking the lead on one of these titles, which included
Phantom Dust,
Perfect Dark, and
Battletoads. Darkside had been interested in the
Battletoads but was told this was off the table, so instead started discussions about bringing a reboot of
Phantom Dust to the new console. Shortly after starting development, Microsoft asked Darkside to include a single-player campaign alongside the multiplayer element, but did not grant any additional funds or time. Darkside, not wanting to lose their opportunity with this title, decided to start creation on a vertical slice of a single-player campaign to help convince Microsoft to provide the additional funds and time. According to former Darkside employees, this announcement was a surprise to them, and none of the pre-rendered footage shown was work created by Darkside. Furthermore, the developers were under confidentiality agreements and could not state they were working on the title, nor was their name associated with the announcement. Darkside took this as a sign of concern from Microsoft that they would not be able to deliver. Microsoft publicly announced that they had ended their working relationship with the studio, though they still intended to produce the title. In June 2015, Microsoft stated that since the removal of Darkside, the project was placed on hold until they could find a studio to work with to develop the title, but they remain committed to producing a new game. Spencer admitted that they likely announced the game too early in 2014, but feels confident that they will release another
Phantom Dust game with the involvement of Yukio Futatsugi, the game's creator, once they decide on the best studio to develop the title. This version was expected to be released in 2017. In an interview with
Polygon following the announcement, Spencer said he had only learned of this remake three weeks prior, as the effort to craft it was led by Shannon Loftis, the head of publishing for Microsoft Studios. According to Spencer, Loftis was able to use internal funds to support its development, keeping it a secret outside of Microsoft Studios, and then revealed the trailer to Spencer prior to the Expo, noting that the game was almost done at that point. Adam Isgreen, creative director for Microsoft Studios, said that details about the re-release of
Phantom Dust had been light as at the time of its announcement, they were still not clear how much they could improve upon the game, complicated by the fact that they did not have the complete final source code from Japan, requiring them to reverse engineer and hack into the original game's binaries to assure what steps they could take. The re-release would support 1080p resolution on the Xbox One and 4K resolutions on Windows, running at 30fps on both versions. They were able to rework all of the arsenal sets so that they can be updated and rebalanced through patches, and the release will include free and paid
downloadable content to expand the title. The studio also reworked the single-player story mission to introduce arsenal building as a core gameplay feature much earlier compared to the original release, and will provide means for players to skip missions if they prove difficult without forfeiting rewards. Spencer stated in January 2017 that the goal was to have the game released prior to the
Electronic Entertainment Expo in June 2017, though Loftis would make the final call on the timing. The game was released on May 16, 2017, which Microsoft confirmed a day prior to that. Microsoft released it as a
free-to-play title for Xbox One and Windows 10 users with
Xbox Play Anywhere support. == Reception ==