This screenshot comes to us from SEGA's official press release for the Xbox Live Arcade version of
Phantasy Star II. The press releases states that the game was "re-worked for High-Definition." As we can see from this example, part of that entails a conversion from the older standard television ration to a widescreen format. This change impacted the dimensions of many graphics displayed in the game. Some enemies, like those displayed in this particular screen, take the conversion worse than others. The battle system menu elements work rather well with the changes, however.