Power Fantastic is the 20th and final track (second of two previously-unreleased tracks) on The B-Sides compilation (included as the third and final disc on The Hits / The B-Sides).
The song was based on a track called Carousel, written by Wendy Melvoin and Lisa Coleman in 1985. Before recording Prince came up with a melody and wrote lyrics for the song. Wendy & Lisa names were left off the credits on the initial release on The Hits / The B-Sides, and the song was initially registered at ASCAP as a Prince solo composition. However this was corrected in September 1993.
The track was recorded live on 19 March 1986 (the same day as And How) at Prince’s Galpin Blvd Home Studio in Chanhassen, Minnesota, during initial sessions for the Dream Factory album (The Hits / The B-Sides liner notes incorrectly state that it was recorded at Paisley Park Studios in Chanhassen, Minnesota). The song was not included on the late April configuration of the album, but was included on a configuration made on 3 June 1986, before being removed again for the July configuration. The instrumental intro to the song was removed when the track was placed on The Hits / The B-Sides in 1993.
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