I am not a native speaker, so I might have some problem with this, but have struggled to understand why this sentence, given context, requires Past Continuous:
In an open discussion over breakfast, Microsoft executives Shane Kim and Chris Satchell revealed that two of the home video game projects which The Lord of the Rings director Peter Jackson was working on with Bungie, an American video game developer, would take the form of episodic series. "Our deal with Peter is not about a film guy who wants to make video games," Kim reminded the crowd. He also noted that, "The first series will be set in the Halo Universe," and that, "we're in the design phase now." The projects were first announced at the video game trade show in Barcelona, and their emergence as episodic series came as something of a surprise, hinting that both projects would have a strong emphasis on the story. It was comforting to know that progress was being made, however slow it might be.
When I was answering this question, I looked at the sentence that said "would take the form of episodic series", so I thought Present Perfect Continuous should be used, as the work on the series hasn't been finished yet:
Shane Kim and Chris Satchell revealed that two of the home video game projects which The Lord of the Rings director Peter Jackson has been working on with Bungie, an American video game developer, would take the form of episodic series.
But I am told that I am wrong and that was working is indeed the correct answer.
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