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I think Square is seeing the success of World of Warcraft and wants in on the action so it's likely that their future may actually be in MMO games. If that's the case Nintendo could be left out in the cold since their system has no harddrive and online support for it is the weakest of the big three.

On another note I find once a console maker starts refusing games and becomes difficult (usually the company who's console is on top in sales) there's a chance that they can alienate or anger some third parties and that their decisions can come back to haunt them at a later date when they actually need third parties more.