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Microsoft Game Studios today announced the upcoming release of Phantom Dust, an Xbox exclusive third-person action game in which players battle opponents in real-time combat with an ever-growing arsenal of over 300 skills. The title is being developed internally by Microsoft Game Studios Japan and is currently scheduled for a Japanese release in 2004.

Phantom Dust is set in a destructible post-apocalyptic futuristic environment where players must harness powerful skills for use in combat, both in single-player missions and against other players via Xbox Live. With more than 300 skills to obtain, players can create their own customized arsenals to take into battle, choosing combinations of skills that appeal to the player's style and taste. Over Xbox Live, Phantom Dust lets players try out their customized arsenals against friends and other networked players worldwide, all while utilizing voice communications.

The Phantom Dust team is led by Yukio Futatsugi, the original creator of several international hit games including Panzer Dragoon and Panzer Dragoon Orta.