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betacon said:
The pirating on the mini nes and lost sales on the VC would be my guess why they're dropping it.

^This.  Now that they are assured that the Switch is a success and they can get the funds they need from it, the added pump in PR from the NES Classic is no longer needed.  They can now buckle down on making sure the Switch is a sound device, limit piracy, and look to the future.  After they explore more with the Switch, we may see another return of the NES Classic in some form, maybe.