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Soundwave said:

Iwata and the successive Nintendo management probably would've ditched Retro if they could have but Nintendo had invested too much into the studio to simply jettison them. If Retro wasn't a start up that Nintendo themselves financed, but was more like an existing studio that they simply had a partnership with (ala Factor 5 or Silicon Knights), I have no doubt Retro would've been kicked to the curb by now too, lol. 

And what motive would they have to 'kick Retro to the curb'?