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Production on the game began prior to the completion of Jet Moto 3. Developers took inspiration from Syd Mead when coming up with concepts and designs for the game. Inspiration was also taken from freestyle motocross, and the ability would have been given to the player to do in air-tricks such as the heel clicker and can-can, similar to modern day tricks performed on specialized dirtbikes.
Developers cited lack of marketing support, camera issues and a flawed physics model for the jet motos as a few of the main concerns with the game's development. Other concerns included a new company president that did not support the game, and the studio director seeking to widen all the tracks, causing a significant increase in development time. These, along with lackluster sales of Jet Moto 3 caused the game to be cancelled two years into production, just prior to beta testing.
Level designers used Alias Power Animator 8.5 to create tracks for the game.
Jet Moto 2124 would be the first in the series to take the player to locations off Earth, including Mars, the moon and one of Jupiter's moons, Europa. Additional real-world sponsors had been solicited for in-game sponsoring, including Doritos, Slim Jim, and Body Glove.