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Kasz216 said:

Why would they let it be released?

Seems like Nitnendo was getting the Raw end of the stick on that. "Hey can we release the game you hold rights too for free on Xbox live but souped up! We'll let you release the crappy regular version for free too!"

It's a chumps deal.

 

Well in a way I'm sure Ninty sees it like that considering the only reason MS is involved is due to the Rare part.  I think what Ninty probably had an issue with was that it was created without their oversight.  And then all of a sudden it's submitted to them for approval.  I think Ninty would have liked to have oversight of the production or work on it themselves instead.  That's what I'd see them having the most problem with.  I mean it's just as much there game as it is Rare's.