The portable audience does matter, at least with Nintendo fans. That's because the install base for portables is much, much higher than home consoles... currently. The DS had 155 million units sold, and most of those people at least know about the KH games out for the platform, and the games sold very well. Same thing with 3DS, KH 3D did very good business; who's to say that there aren't people who own both Wii U and 3DS? Considering how the hardcore Ninty fans have gotten the Wii U and only recently are the casuals getting into it, the audience is definitely there. You have to remember that fans like me were 10 years old and playing the original game on PS2; we took different journeys, but that doesn't mean it doesn't make sense to put it on the Nintendo home console.
That said, just because the audience is there doesn't mean they are necessarily smart. Going for the long-term investment is always worth it, because short-term wins don't last. Putting in that extra effort and extra money to develop for PPC architecture would be an excellent long-term investment, because it continues to establish the Sony/Nintendo exclusivity on the franchise. From a KH fan's point of view, MS doesn't deserve KH. From a business standpoint, I'm closing off a channel of productivity by doing this. It doesn't make sense to me.
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