Shadow the Hedgehog was originally designed as a character who would disappear after Sonic Adventure 2, according to comments from Sonic Team executive Takashi Iizuka reported by One More Game. His unexpected popularity led the studio to revive him for Sonic Heroes instead.
A planned ending
Shadow debuted in Sonic Adventure 2 as a rival to Sonic, arriving well after the series began on Sega Genesis. The game’s ending was intended to close his story, with Sonic Team treating the character as a temporary addition rather than a permanent member of the cast.
Fans changed the plan
Iizuka said the team was surprised by how strongly players responded to Shadow when Sonic Adventure 2 was released. That reaction changed the character’s role, leading to his return in Sonic Heroes. The decision shows how audience response influenced a major direction in the series, even before Shadow had an established long-term history.
A larger role in the series
Shadow later became one of the few Sonic characters besides Sonic to headline a game of his own. He also returned as a central character in Sonic X Shadow Generations and remains prominent in fan-made modifications and other Sonic-related projects.
Still a favorite at Sonic Team
Iizuka also identified Shadow as his personal favorite character and said he wanted to give him more attention in the future. That comment describes a continuing creative interest, rather than announcing a specific upcoming game or release.
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Source: Shadow the Hedgehog is supposed to be dead

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