Nintendo banned Square from their offices for 10 years after FFVII went to PlayStation. EDIT: japanese business model is akin to Yakuza

[Leynos]

RolStoppable said:

Hynad said:

Yet here you are leaving Nintendo out as if their actions didn’t also push Square to move on to a publisher that’s not as draconic and greedy with third parties, as it is well known Nintendo was during that time.

The parties involved in the Squaresoft and Nintendo falloff doesn’t only include Sony and Squaresoft. It also includes Nintendo. And that’s a side that you more often than not leave out, because it doesn't match with your one-sided narrative.

Nintendo were asking more money from third parties than Sony. If placed with the choice to buy a car for 30k and then you see the same exact car for 20k, would you buy the one for 30k simply because you have a somewhat long history with the seller? No. You’d think the seller takes you for granted and tries to rip you off . This is basically what Nintendo did with third parties back then. The history is well known and documented. 

The reason why I leave Nintendo out is the same reason why I wouldn't put any blame on Sony for Bandai-Namco choosing the Xbox 360 for Tales of Vesperia or Square-Enix choosing the Xbox 360 for Star Ocean 4. These third party publishers didn't choose Microsoft because Sony had ripped them off, they went with Xbox because Microsoft provided a moneyhat. If your line of thinking had to be applied, then we both would have to agree that Sony had messed up anytime Microsoft successfully moneyhatted a third party. But I reject that for the simple reason that it's stupid to blame one console manufacturer for losing out on a game when another console manufacturer threw money around.

Also, if you read the quote from Squaresoft's CEO, it's clear that it wasn't about a general royalty fee comparison between Sony and Nintendo, because what he said is that Squaresoft got a much better deal by Sony than any other third party publisher who developed for the PS1.

Tales of Vesperia came to 360 because 360 was popular in the west. That was the era Japan was desperate to appeal to the west more. Namco felt ToV had a better chance in the west on 360. They were just one of the few that didn't make it overly gritty to do so like Bomberman Act Zero, DmC, Bionic Commando, Castlevania and the like.