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Mr Puggsly said:

That's the story, but I don't necessarily believe it. Now I do believe Sega would back out of publishing a sequel because they're imbeciles. I don't believe Nintendo saved this game. I think Nintendo made an appealing offer and Platinum Games wanted an opportunity to get a game published by Nintendo. I'm sure that's an honor because Nintendo doesn't do it often.

I still expect a PS360 ports to come eventually. I think there are publishers willing to bring this game to other platforms.

Not entirely sure what you don't believe, really, but, okay, fair enough. Not my place to say anything because neither of us will ever actually know what was what. It'll never come out and the details of the deal won't ever surface.

I will say though, if Sega had any intention of publishing a sequel, I'm fairly sure that there would have been no implication that it was cancelled at all. Companies don't like losing that inertia that comes with these sorts of things. Loss of inertia is kind of fatal to most companies in this business and the rumours were well abound of Sega's restructuring turning Baynetta 2 into a casualty. Nothing says otherwise. Far as most people were concerned, a sequel would have never seen the light of day.

Platinum Games wanted to get their game published and said okay to an exclusive for a Nintendo deal. Sega agreed, knowing full well that some green is going to be thrown their way because of it. Done and done, rather good deals all around. So, technically, that DOES kind of say that Nintendo saved the day on that one.