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DonFerrari said:
The question would be, did the other 3 R&D were shunned or they didn't met the challenge? Because the way you put all 4 were free to develop and had incentive to compete against one another, but one was much better than the other 3 so they came first. What should Nintendo do in your opinion? squeeze EAD and send their best devs to the other R&Ds and spread them?

Basically, R&D4 produced the most successful titles, and thus won the favoritism of Yamauchi. As a result, he put more focus on the now renamed EAD division, rather than focusing on growing the other studios within the company. Yamauchi didn't give all the departments a fair chance, instead he just put all the eggs into the basket of the division that got his attention the most, which happened to be EAD. The other studios just couldn't compete with Miyamoto and his team, and thus were sadly treated as afterthoughts.