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NightDragon83 said:

I still don't buy Nintendo's line of thinking as to why they cancelled a 99% finished game ahead of release. The N64 wouldn't see release for another year, and StarFox was a wildly popular title when it came out for the SNES in '93, so a bonafide sequel just a couple years later would've done very well and further whet gamers' appetites for a 64-bit outing of the franchise.

I mean it's not like Nintendo stopped support of the SNES in '95... they still put out major titles like Earthbound, SMW2, DKC2, and a home port of Killer Instinct that year, and even in '96 you had major titles like SMRPG, Kirby Super Star, Ken Griffey Winning Run and DKC3 alongside the launch of the N64.

I think they wanted the Super FX chip axed in general because they wanted to shift focus to the N64 for 3D graphics. 

I remember looking at game magazines back then and Nintendo was supposed to publish a bunch of SNES Super FX games as I recall. Star Fox 2 was one, but FX Fighter and Comanche for SNES were also supposed to be Nintendo published games that used the Super FX chip as I recall, but Nintendo backed out of those deals too.