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The American software development culture is completely different, it would destroy Nintendo and deliver only bad to mediocre games. Look at what happened to Rareware which was once the best software developer in the world.

Nintendo has unlimited resources, if a game like Zelda needs 300 people and two years more time, it gets it. Nintendo also delayed Rareware games a lot to maximize the quality. This would not happen under Microsoft, all games would have to be rushed and put out in beta state at the initial release date and with the initially planned resources.