I don't think Blue Dragon DS is on hold... not from anything I've seen. Do you have any source on that? I mean, even if it was, it certainly wouldn't be a Microsoft move to spite Nintendo. Microsoft needs the DS audience, Nintendo doesn't need Microsoft on the DS. The reason they are making Blue Dragon Plus and Viva Pinata DS is to promote the franchises on their console (which weren't very successful... especially Blue Dragon). That's like saying "Well, since I got a paper cut I might as well amputate my finger."