The levels were created differently to AO. Rather than each screen being individually rendered, certain objects were drawn, then resized and reused in different screens. This was quicker, and still looked impressive.
Maybe during part of the production of MO they started? It took 2 years just to design Munch. I wouldn't think it would take the whole staff to work on Munch...they could be doing other things, though that may have been programming anyway, but I dunno...
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