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This was Paradigm Entertainment's second Nintendo 64 game and was co-developed with Japan's Video System. It is known as Sonic Wings in Japan.

The storyline involves the fighter pilots Volk, Hien, Glenda, and Hawk of an international police force called Project Blue in their fight against Phutta Morgana, an evil organization bent on destruction.

When Aero Fighters Assault was released, it had to compete with Namco's Ace Combat 2, a similar game for the PlayStation.