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I think it's clear Nintendo made an exception for Monster Hunter and money-hatted it (one of Capcom's requests was the Analog add-on, which Nintendo agreed to, otherwise I doubt that would exist).

But I don't see anything wrong with it. It's been a brilliant move as its effectively cut the legs off the Vita in Japan, exposing the Sony's handhelds as a one-trick pony there.

Plus it's pretty funny payback for the PSOne/PS2 days where Sony denied Nintendo franchises like Final Fantasy and Metal Gear Solid and Tomb Raider and GTA. Now they're getting a taste of their own medicine.

Nintendo made a fortune off the Wii/DS/Brain Training/Nintendogs, etc. paying off Capcom was no problem. Not Nintendo's fault that Sony conversely ended up blowing all their PS1/PS2 profit on the PS3. It was probably fairly easy for Nintendo to outbid Sony, they simply have much more money.