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"He quit the company because of unpaid bonuses and conflict with management. And this is relevant, how exactly? He seems to have shown more interest in portable games than anything, lately."

Do we know what those conflicts were over? Sure it can be said that they were over the unpaid bonuses. But if you look at what he says in that article, one begins to think there were other reasons. He says that he was wanting to make cinematic games of the type that are popular in Japan and that the 360's dvd 9's just didn't give him the space to make those kinds of games. Read the article in it says, "I was wanting to make cinematic games that would require much more space than is available on dvd to have them in the quality that I wanted them to be in. I thought the 360 was going to have this type of medium though I didn't know for sure (but I was led to believe that it would), when my team found out that it was just going to use dvds we were really knocked out."

That is almost word for word what he says. I guess he did have a deal to make two 360 games and they were Dead or Alive 4 and Ninja Gaiden II and as soon as they were done, he quit. I believe it was over the storage medium and how it effected the quality of games he was able to deliver. In light of recent comments like those from John Carmack about Rage and MS' licensing fees for multiple disc games, I don't think that it is too much of a stretch to say the dvd 9s and the conflict that they had with Itagaki's visions for his games had a great deal to do with his departure from Techno.