According to series creator Tokurou Fujiwara, his team's early vision for the stage designs were going to take their art direction into a darker and splatter horror-influenced direction, but this idea was scrapped, likely due to pressure and expectations from higher-ups for the game to be a more faithful sequel to Ghosts 'n Goblins.

In an interview with game's designer Tokurou Fujiwara, he was asked how the developers began making the game. He responded: "I’ve been wanting to make this game for a very long time. Then when the CP System PCBs came out, it felt like the timing was finally right. The CPS boards have a lot of memory, but the plans we drew up for Daimakaimura called for a game even larger than that. There was so much stuff in there—twice as much as what’s been added to the game right now. Even when it’s completed, I think it will only be about half of what we originally planned. And still, compared with the original Makaimura it’s a massive increase in content."

In the arcade version the main boss was named Lucifer, while in the console versions he was named Loki. This change was made to reduce the strong religious reference to the biblical Satan.