Short answers, pulled from the story.
The Collective merged with Backbone Entertainment to form Foundation 9 Entertainment, which then created Double Helix Games. This new team took over production duties after Konami executives revealed the change at E3 2007.
Masashi Tsuboyama announced the game's development in a 2004 interview with Eurogamer. Reports confirmed on the 10th of September 2009 that the game would not see an official release throughout Japan due to marketing reasons.
Alex Shepherd was never a soldier but had been in a mental hospital since an accident occurred involving his brother Josh. His father retrieved Josh's body from the lake after Alex caused him to fall while struggling for a ring during their childhood.
The Australian classification board refused to classify the game due to impact violence and excessive blood effects including various body parts being drilled into. Objectionable scenes included the bisection of a character by an enemy until representatives asked Konami to tone down violence.
Akira Yamaoka wrote 70 minutes of music for the entire project despite the change in development teams. The soundtrack released on the 24th of November 2008 featuring vocals provided by Mary Elizabeth McGlynn for four tracks.