Shining Force doesn't use the Shadow/Highlight feature. At all.
To simulate the ground going dark and bright, they switch the tiles that change colour onto a different sub-palette, and have that go between dark and bright. That's why the game has so many CRAM garbage being displayed on the bottom of the screen when in PAL mode.
This is also why Shining Force II and CD have issues with the colour cycling in some battles, due to having multiple background layers visible (it's not possible to cycle their colours due to being offset from the main foreground. Basically, cycling them too would cycle the wrong tiles).
The Game Gear games use the exact same technique (and is part of the reason they have such drab backgrounds, due to lack of available colours).
Using S/H to achieve this effect is impossible in the force games, anyway, due to limitations of how the mode/s work.
To cut the story short, Shining Force series has an effect that looks pretty, that goes dark and bright, but it's nothing more than your el-standardo palette cycling. No transparency effects here, folks.
If you doubt me, I dare you to consult anyone here willing to use an emulator with debug tools.

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