"Nintendo is going down a strategic path where we believe they want to make smaller, simpler games. But Silicon Knights is not built for smaller, simpler games. We love those guys but as much as we tried to come to a half-way point to make a Silicon Knights game that fits within a strategy that Nintendo wants, we just really couldn’t do it. So it’s really strategic differences."
This is pretty much my exact concern regarding Nintendo's future. Of course everytime I bring something like this up I get a lot of "Nintendo is making games for non-gamers and hardcore gamers" and then the DS gets brought up even though it supports my concern. Anyhoo, an inability of reaching a "halfway point" doesn't sound very good. That doesn't sound like Nintendo making both simple and complex games. This may very well be an excuse that makes SK look better than "MS offered us huge sacks of money" would, but it's not unbelievable or anything. Nintendo's been talking about simple games and non-gamers a lot, the DS is full of games that fit this description, and former Nintendo loyalists like Silicon Knights and Factor 5 are jumping ship. There is certainly is a lot of evidence to suggest Nintendo is going "simple" on us.