[3] To overcome these weakness a number of design objectives were created: harness the full potential of the StrongARM CPU, support multiple processors, add support for PCI expansion, offer the best possible graphics, run existing RISC OS applications, and provide enhanced RISC OS functionality.

An additional design objective of reusing the same case as the RiscPC was dropped due to power supply requirements and electrical interference problems.

They successfully ran at the full front-side bus speed of 64 MHz, and the improved performance of the video chip was also seen; however, various bugs in the sound DMA were reported and general system instability was noted.

[23][24] On 17 September 1998, Acorn finished a review of its business and decided to close the 'Workstation Division', the department developing Phoebe 2100, and all work stopped.

[28] Computerworld Online News reported an Acorn spokesman saying "The problem was that it would have had a retail cost about twice as high as for a comparable PC".

In March 1999, RISCOS Ltd negotiated a licence with Element 14, the recently renamed Acorn Computers,[32] and set about finishing the development of RISC OS 4.

[33] In addition, after the cancellation, excess stock of the Phoebe 2100 yellow NLX case was sold by CTA Direct,[34] sometimes including an NLX-compatible PC.