Mensrea said:
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That franchise is huge, yet it looks like S-E thinks that their time and resources are better spent in other games. Nintendo could put the extra money (and devs) S-E thinks its needed for another Kingdom Hearts game to be worth it.
Actually getting Kingdom Hearts would be cheaper on the long run than Shenmue, as Shenmue games are ridiculously expensive to make, and it will sell more.
You need big sales from a third party to convice other third parties that there's money to be made in your system, and nothing better to do that than a big franchise. Monster Hunter and Zombi U can't do everything by themselves.
Nintendo does have the money, they got Resident Evil two gens ago.
EDIT - That being said, I think it's better for Nintendo to get talented devs and let them make new entries of existing Nintendo franchises that aren't being used at the moment.