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Pre-dev (pre-development) is just a very early period before any official designs are drawn up to make the game. Ideas and concepts can be realised and demonstrated to prove game mechanics, puzzle ideas, etc. There is also the technical aspect, as in familiarising with new tech (the Xbox was a new console at the time and due to be released, Fuzion Frenzy being one of the first releases on launch day). In a nutshell, a bit of time to "play" (albeit in a focused manner) before the serious work starts in putting together an agreed development plan and strategy.