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Sonic wasn’t originally a hedgehog: SEGA’s co-creator Naoto Oshima tweeted out some amazing early concept sketches that evolved into the Sonic the hedgehog we all know.
Initially, the project was to be called Twin Stars and tell about two young twin brothers. Differing only in the color of their hair and clothing, the two characters were supposed to race through levels in a platforming style and face various enemies, but this concept was later changed, apparently in collaboration with Yuuji Naka, who had recently been arrested for insider trading.
As seen in the sketches, what appears in the sky was supposed to be the game’s villain, Thirteenth: his long nose is practically the only thing that the authors kept for the character of Dr. Robotnik, and the fairy-tale setting was set aside for later use.
Oshima answered various questions from his followers, explaining that the concept of Twin Stars was created in order to create a mascot for SEGA, which the Japanese company especially felt the need for after the huge success of Super Mario.