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"Theres no reason to not make it if they are able to make games and are not payed by microsoft not to. But they said they are unable to because it is too difficult to do. Thus to me. They are incompetent. "
They are able to make games so they must be paid off. There are plenty of reasons to not make a game for a console.
Saying a machine is difficult to programme doesn't mean they can't or are incompetent. It means they can't be bothered with the hassle or just don't want to.
Or are you saying valve don't know how to make games?