Sega decided to make a console-first online game. It was sci-fi from the beginning, but the Phantasy Star veneer was added later in development. The creators of PSO are on-record saying that the only thing PSO shares with the classic PS games are names of things.
Strangely, I posted this just a few days ago (I've been playing Phantasy Star Portable recently)
https://www.avclub.com/sega-phantasy-star-online-gaming