It derives many of its gameplay mechanics from previously established Atlus role-playing games, such as turn-based combat involving the exploitation of enemy weaknesses, overworld exploration with a calendar system and light social simulation elements, and a mechanic enabling players to develop more intimate relationships with their party members outside of combat. Metaphor: ReFantazio takes place in the United Kingdom of Euchronia, which is set in a medieval fantasy realm that acts as a "mirror" to the modern real world. The main protagonist is a boy of the Elda tribe who has been ostracized by wider society for being "tainted" with the inheritance of forbidden magic and is often subject to discrimination and prejudice as a result. On December 19, 2016, Atlus Japan revealed that Hashino was establishing a new internal development studio within the publisher named "Studio Zero", whose mission statement was to "create for all platforms as the big counter the current era needs." Alongside Hashino's involvement, Atlus said that the rest of the staff at Studio Zero was composed of alumni who had previously contributed to past RPGs published by them, while stating that they would reveal preliminary details on the development team's first game project during a livestream scheduled for later that week. On December 21, 2016, Atlus officially announced Studio Zero's first game, a fantasy role-playing title under the codename "Project Re:Fantasy", which would be directed by Hashino. The game was also confirmed to feature character design by Shigenori Soejima and music composed by Shoji Meguro from the Atlus Sound Team, both of whom previously collaborated with Hashino on both the Persona games he directed, as well as the action-puzzle platformer Catherine . The latter outlined the importance of Project Re:Fantasy as a new IP for Atlus, affirming that the goal behind creating Studio Zero was to "aim even higher" with original projects that could stand separately from either the Megami Tensei or Persona franchises, though the development team's formation was previously stifled due to the people of interest to the company being committed to other projects at that time, which partly led to Hashino's selection to serve as creative producer and game director for the project after finishing Persona 5. Hashino himself explained Studio Zero's intentions of creating a role-playing game rooted in traditional fantasy aesthetics, reflecting on his awareness of the publisher's reputation for creating RPGs with contemporary backdrops to counter developers who were more comfortable with the fantasy genre as it went mainstream. Hiraoka additionally spoke to Soejima and Meguro's involvement in the project, calling them both "indispensable" members of the Persona series development team who would continue to hold their respective roles at P-Studio, but were brought onto Studio Zero and Project Re:Fantasy due to a shared desire between Hashino and Hiraoka to have their talents serve another project away from their typical contributions. On December 23, Atlus opened the official website for Studio Zero, with a foreword from Hashino and an unveiling for further staff involved in the studio and Project Re:Fantasy beyond Hashino, Meguro and Soejima. Later that month, a "Special Celebration Livestream" featuring the Persona Stalker Club was streamed on YouTube where the game was separately confirmed to be in development for PlayStation 4 and PlayStation 5.
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