The Evolved version of the game takes place on a playfield that is slightly larger than the display area of the TV screen, and the camera follows the player's movements. A background grid pattern adds to the graphical effects by warping in reaction to player shots and the behavior of certain enemies. This version introduces new enemies and a score multiplier that increases as the player destroys enemies without losing a life.
The game initially started out as a way for the team at Bizarre Creations to test out the Xbox controller while making Project Gotham Racing. The team included the game as an extra in the sequel not expecting very much. When the creators realized how popular the game was they decided to work on a stand-alone game for the 360's Live Arcade. For the standalone version, which eventually grew to become Retro Evolved, creator Stephen Cakebread initially wanted to make the game have a more linear structure where the players would progress through levels. However, Cakebread soon became aware of the game Mutant Storm and realized that a level-based structure would make Retro Evolved almost identical and thus decided to drop it.
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