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Ok, so after reading more into this I didn't realize until now that the actual reason Nintendo doesn't want to publish it is because they thought it was an awful game? Lol, to be fair you can't blame them though, if something's going to be terrible they probably won't want their name on it or for it to be considered a "nintendo game" or something.

Kind of makes the whole point of them getting it as an exclusive pointless though lol.