Dino Crisis 2 entered production shortly after the release of Dino Crisis. Still handled by Production Studio 4, Hiroyuki Kobayashi took over as producer. The game was the first in the series to be written by Flagship, with the studio's lead author Noboru Sugimura developing the series lore for the rest of the series.
Running contrary to the previous game in the series, producer Hiroyuki Kobayashi wanted Dino Crisis 2 to be rely on arcade-style features, abandon item-management, and give the player easy access to enemies so they can far outperform the dinosaur enemies so the user experience is more fun. In an interview for Prime Games, Kobayashi described the core theme of the gameplay as being "the exhilaration of defeating a succession of dinosaurs". A points system was designed so players have more enjoyment in fighting; these points can be used as currency at in-game shops, where more ammunition and more powerful weapons can be purchased, eliminating the need for item management. Sub-Weapons were also designed to give players more ways of fighting enemies, such as a powerful machete or the Firewall.
The graphic department was headed by Kazunori Tazaki, who was also in charge of creating and designing the characters for the game. The CG models were then created by Yasuyo Kondou and Kaoru Araki.
Rather than continue with 3D backgrounds like the original Dino Crisis, Studio 4 instead went with pre-rendered backgrounds, which were more typical of the studio. The background art team was led by Masachika Kawata, with Yusuke Kan drawing sketches for each room. When agreed upon, a larger team would then create CG artwork based on the sketches. To create a more convincing jungle environment, a team had to do research on what jungle environments look like, as well as how the ground is lit in such dense woodland.
Development of the Dino Crisis 2 story was split between the internal planning department and the external professional writing studio, Flagship. The story was created by Flagship's head writer, Noboru Sugimura, with Yusuke Hirano and Kishiko Miyagi as co-writers. The scriptwriting process focused initially on the opening and ending cutscenes; other scenes were written afterwards around the game objectives, following meetings with the Planning department. This department consisted of.[excerpt 1][excerpt 2]
The story development was not set in stone, it should be noted. The ending cutscene was scripted to be longer, and feature Regina exiting the time gate in 2010, running into the arms of her lover and SORT superior, Alex. The 2010 setting was removed, and Alex is not mentioned at all in the released game. At one point the character of Paula was intended to be the daughter of Dr. Edward Kirk, who appeared in the previous game. This was altered to make her Dylan's daughter, possibly to add a time-travel element.[excerpt 3]