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I don't think his reasoning is stupid. Gaming community (and people in general) just love to throw that word around, but I would wager most of you guys are more "stupid" than what you call stupid all the time.

Sakurai wants to deliver quality experiences, and I can see why people uploading all of the cut scenes you normally would get from playing the game makes the cut scenes lose their value. If you ever watched ThatOneVideoGamer's videos on youtube, you can see why it just isn't worth the effort to make all those CG scenes and a drawn-out story based around them.