Koei officially announced historical fantasy game Oni, which was later renamed to Nioh in 2004 based on an unfinished script by the legendary Japanese director, Akira Kurosawa. Originally, Nioh was internally developed by Koei as a JRPG game, which was to be developed alongside with the movie of the same name, but the movie production did not materialized. So instead the game development continued as planned in order to meet the 2006 release for the PlayStation 3. Unfortunately, the game was scrapped entirely as Koei CEO, Kou Shibusawa, wasn’t too happy with the result.
The production of Nioh was being restarted with Omega Force studio, famed for developing Dynasty Warrior series, took over & effectively change the game mechanics into a fast paced action oriented game. That too was scrapped as well as it was too similar to Dynasty Warrior. At this point, Nioh would be shelved indefinitely if no one could make it right.