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NoirSon said:

Despite their talent and success I get the feeling Nintendo really doesn't know what to do with them due to internal politics and cultural issues.

This.

The way Nintendo has handled Retro this generation is like if Sony put Naughty Dog onto making Modnation Racers 2 instead of Uncharted 4.

At this point I'm fairly sure Retro's next project will be another E-rated cartoon game, instead of anything that leverages their less EAD-esque capabilities.