Mistwalker founder Hironobu Sakaguchi acted as co-producer and writer, Drakengard artist Kimihiko Fujisaka was designing the characters, and composer Nobuo Uematsu was attached to the project.

The storyline was based in a fantasy world equivalent to the Middle Ages, where humans begin using a race called the Bogles for war.

Following a prolonged media silence, AQ Interactive announced its cancellation in 2008, attributing it to current and projected market conditions.

The narrative would have centered around the relationship between humans and small stone creatures called Bogles, which acted as protective charms.

Mistwalker was a new studio working on multiple 360 projects including Blue Dragon and Lost Odyssey, while Cavia was known for the Drakengard series.

[3][5] The characters were being designed by Drakengard artist Kimihiko Fujisaka, and the music was being composed by Sakaguchi's recurring collaborator Nobuo Uematsu.

[6] Development ran parallel to that of Blue Dragon and Lost Odyssey, which Sakaguchi described as difficult for the team due to work pressure of producing multiple large-scale projects at once.

[7] Commenting on the gameplay, Iwasaki said he aimed to combine Sakaguchi's knowledge of RPGs with Cavia's previous experience developing action titles.

[2] While it looked like 2D animation, all graphics were 3D and made use of a special visual filter dubbed "Fujisaka shader" which produced the effect of drawn sketches in motion.

[10] Manabu became character and concept designer, resulting in an artistic shift for the game, with Sakaguchi wanting the art to be more realistic.

[3] It was one of several next-generation game titles announced by AQ Interactive following its formation earlier that year, alongside Cavia's Bullet Witch and Vampire Rain from Artoon.

[1] It was Mistwalker's fourth announced project within 2005 following Blue Dragon, Lost Odyssey and the Nintendo DS title ASH: Archaic Sealed Heat.