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Development on The Lost Frontier started at Naughty Dog, being worked on by a second team that was created after finishing Jak X: Combat Racing. However, with both teams developing for new consoles (the PS3 and PSP), most of their time and effort was spent learning the hardware and writing new tools, with very little progress being made on the games themselves. People within the company began to get frustrated, and many quit. With the studio rapidly losing developers, it was decided that one of the projects would have to be dropped and the two teams consolidated for the studio to survive. The Lost Frontier was given to High Impact Games to finish, and Naughty Dog put their whole team on Uncharted: Drake's Fortune.
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