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Actual development began in December 1999. Due to the scope of the project, Tanaka, Sakaguchi, and Ishii drafted as many developers from Square as possible, with the final staff being merged from four different development teams: the ''Legend of Mana'' and ''Chrono Cross'' crews in Tokyo, and the ''Brave Fencer Musashi'' and ''Parasite Eve II'' crews from Osaka.<ref name= "tanakap01" /><ref>"[https://we-are-vanadiel.finalfantasyxi.com/post/?id=381&lang=en WE DISCUSS VANA'DIEL #10: Naoki Yoshida Part 2]". ''WE ARE VANA'DIEL 20th Anniversary Commemorative Website''. Square Enix, May 30, 2022.</ref> ''XI'' was developed concurrently with the PlayOnline service, into which the game is fully integrated; both together cost between US$ 17—25 million (2—3 billion yen) yen to develop and were projected to turn in profits within five years of launch. Development used the NVIDIA GeForce 4 Ti graphics processor, described by Square's then-President Yoichi Wada as the most powerful on the market at the time.<ref>"[https://web.archive.org/web/20121104092442/http://www.ign.com/articles/2002/05/10/final-fantasy-xi-big-plans-big-money Final Fantasy XI -- Big Plans, Big Money]". IGN, May 10, 2022.</ref> The localization process started as soon as ''Chrono Cross'' finished its localization. To fulfill the vision of a "world without borders", the English and Japanese scripts of ''XI'' were made at the same time, with characters and enemies each keeping a single name across all languages.<ref>"[https://www.ign.com/articles/2003/05/15/e3-2003-final-fantasy-xi-developer-interview E3 2003: Final Fantasy XI Developer Interview]". Jeremy Dunham. IGN, May 15, 2003.</ref> Instead of different server groups separated by language, ''XI'' uses a single set of servers hosting players from all over the world, reducing development costs by 66%.<ref>"[https://www.gamedeveloper.com/design/gdc-creating-a-global-mmo-balancing-cultures-and-platforms-in-i-final-fantasy-xi-i- Creating a Global MMO: Balancing Cultures and Platforms in Final Fantasy XI]". Christopher Woodard. ''Game Developer'', March 24, 2006.</ref> The development process was so fast for a game of its scale that Ishii was burned out after the mastering process; even then, a considerable amount of story and content planned could not be finished in time for launch and was split off into ''Rise of the Zilart''.<ref name="ishiip03">"[https://we-are-vanadiel.finalfantasyxi.com/post/?id=538 WE GREW VANA'DIEL: Koichi Ishii Part 3]". ''WE ARE VANA'DIEL 20th Anniversary Commemorative Website''. Square Enix, October 12, 2022.</ref><ref name="katop01">[https://we-are-vanadiel.finalfantasyxi.com/post/?id=309 WE DISCUSS VANA'DIEL: Masato Kato Part 1]". ''WE ARE VANA'DIEL 20th Anniversary Commemorative Website''. Square Enix, March 2, 2022.</ref>
Actual development began in December 1999. Due to the scope of the project, Tanaka, Sakaguchi, and Ishii drafted as many developers from Square as possible, with the final staff being merged from four different development teams: the ''Legend of Mana'' and ''Chrono Cross'' crews in Tokyo, and the ''Brave Fencer Musashi'' and ''Parasite Eve II'' crews from Osaka.<ref name= "tanakap01" /><ref>"[https://we-are-vanadiel.finalfantasyxi.com/post/?id=381&lang=en WE DISCUSS VANA'DIEL #10: Naoki Yoshida Part 2]". ''WE ARE VANA'DIEL 20th Anniversary Commemorative Website''. Square Enix, May 30, 2022.</ref> ''XI'' was developed concurrently with the PlayOnline service, into which the game is fully integrated; both together cost between US$ 17—25 million (2—3 billion yen) yen to develop and were projected to turn in profits within five years of launch. Development used the NVIDIA GeForce 4 Ti graphics processor, described by Square's then-President Yoichi Wada as the most powerful on the market at the time.<ref>"[https://web.archive.org/web/20121104092442/http://www.ign.com/articles/2002/05/10/final-fantasy-xi-big-plans-big-money Final Fantasy XI -- Big Plans, Big Money]". IGN, May 10, 2022.</ref> The localization process started as soon as ''Chrono Cross'' finished its localization. To fulfill the vision of a "world without borders", the English and Japanese scripts of ''XI'' were made at the same time, with characters and enemies each keeping a single name across all languages.<ref>"[https://www.ign.com/articles/2003/05/15/e3-2003-final-fantasy-xi-developer-interview E3 2003: Final Fantasy XI Developer Interview]". Jeremy Dunham. IGN, May 15, 2003.</ref> Instead of different server groups separated by language, ''XI'' uses a single set of servers hosting players from all over the world, reducing development costs by 66%.<ref>"[https://www.gamedeveloper.com/design/gdc-creating-a-global-mmo-balancing-cultures-and-platforms-in-i-final-fantasy-xi-i- Creating a Global MMO: Balancing Cultures and Platforms in Final Fantasy XI]". Christopher Woodard. ''Game Developer'', March 24, 2006.</ref> The development process was so fast for a game of its scale that Ishii was burned out after the mastering process; even then, a considerable amount of story and content planned could not be finished in time for launch and was split off into ''Rise of the Zilart''.<ref name="ishiip03">"[https://we-are-vanadiel.finalfantasyxi.com/post/?id=538 WE GREW VANA'DIEL: Koichi Ishii Part 3]". ''WE ARE VANA'DIEL 20th Anniversary Commemorative Website''. Square Enix, October 12, 2022.</ref><ref name="katop01">[https://we-are-vanadiel.finalfantasyxi.com/post/?id=309 WE DISCUSS VANA'DIEL: Masato Kato Part 1]". ''WE ARE VANA'DIEL 20th Anniversary Commemorative Website''. Square Enix, March 2, 2022.</ref>


''Final Fantasy XI'' was announced in January 2000 at the Square Millennium event, with a mockup trailer and key artwork by Shinichi Kameoka. It was announced to require two peripherals, the PlayStation 2 Network Adapter and the PlayStation 2 Hard Disk Drive, for its online capabilities and software updates respectively. Its reveal as a numbered title was met with negative press, and several reporters questioned its status as a mainline title and if it would have a structured story, which was not common in MMORPGs of the time.<ref>"[https://web.archive.org/web/20130116221144/http://rpgfan.com/soundtracks/ff11/index.html Creating a Global MMO: Final Fantasy XI]". Chris Winkler. RPGFan. Archived from the original on January 16, 2013. Retrieved on May 30, 2023.</ref>  A month later, Square announced a simultaneous worldwide release for PlayStation 2 and Microsoft Windows, but this plan fell through due to delays in production of the required PlayStation 2 peripherals; as a result, the PlayStation 2 version was released late in North America and never released in Europe.<ref name="tanakap01" /><ref name="ishiip03" /><ref>"[https://www.ign.com/articles/2000/02/09/colossal-final-fantasy-xi-revelation Colossal Final Fantasy XI Revelation]". Dave Zdyrko. IGN, February 8, 2000.</ref> A port for the Xbox was scrapped because the console's 8GB hard drive was considered too small.<ref>"[https://web.archive.org/web/20080221120550/http://www.gamasutra.com/php-bin/news_index.php?story=15400 AGDC: How Square Enix Hunts The Hunters]". ''Gamasutra''. Brandon Sheffield, September 6, 2007.</ref>
''Final Fantasy XI'' was announced in January 2000 at the Square Millennium event, with a mockup trailer and key artwork by Shinichi Kameoka. It was announced to require two peripherals, the PlayStation 2 Network Adapter and the PlayStation 2 Hard Disk Drive, for its online capabilities and software updates respectively. Its reveal as a numbered title was met with negative press, and several reporters questioned its status as a mainline title and if it would have a structured story, which was not common in MMORPGs of the time.<ref>"[https://web.archive.org/web/20130116221144/http://rpgfan.com/soundtracks/ff11/index.html Creating a Global MMO: Final Fantasy XI]". Chris Winkler. RPGFan. Archived from the original on January 16, 2013. Retrieved on May 30, 2023.</ref>  A month later, Square announced a simultaneous worldwide release for PlayStation 2 and Microsoft Windows, but this plan fell through due to delays in production of the required PlayStation 2 peripherals; as a result, the PlayStation 2 version was released late in North America and never released in Europe.<ref name="tanakap01" /><ref name="ishiip03" /><ref>"[https://www.ign.com/articles/2000/02/09/colossal-final-fantasy-xi-revelation Colossal Final Fantasy XI Revelation]". Dave Zdyrko. IGN, February 8, 2000.</ref>


''XI'' was designed with the key theme of "bonds". The combat system and character-building was heavily influenced by ''[[Final Fantasy III]]'' and ''Legend of Mana'', with many systems from the latter incorporated into ''XI''. The game's high difficulty curve was intended to not only increase the stakes of battle, but also allow players to bond over their experiences of overcoming adversity and be rewarded for skillful cooperation. Director Koichi Ishii was responsible for designs related to the worldbuilding and lore; he first drafted the world of Vana'diel in a hand-drawn map, and from there, elaborated on its lore including the backstories of its five races and nations with help from planner Kenichi Iwao and writer Masato Kato.<ref name="ishiip02" /><ref name="ishiip03" />
''XI'' was designed with the key theme of "bonds". The combat system and character-building was heavily influenced by ''[[Final Fantasy III]]'' and ''Legend of Mana'', with many systems from the latter incorporated into ''XI''. The game's high difficulty curve was intended to not only increase the stakes of battle, but also allow players to bond over their experiences of overcoming adversity and be rewarded for skillful cooperation. Director Koichi Ishii was responsible for designs related to the worldbuilding and lore; he first drafted the world of Vana'diel in a hand-drawn map, and from there, elaborated on its lore including the backstories of its five races and nations with help from planner Kenichi Iwao and writer Masato Kato.<ref name="ishiip02" /><ref name="ishiip03" />

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