“At the Germany Games Convention I was asked about [Nintendo vs. Capcom]. I mentioned it was an interesting idea that somehow transmogrified on the Internet into me saying I was going to do it! I have no plans to do it. I certainly don’t think anything is impossible, though not terribly likely is probably a way to phrase it I had to go to Nintendo President Iwata-san and actually apologize that I let things get out of hand. But maybe this whole conversation could be the start of something like that… or maybe it ends with me in the dog house with Iwata-san. Time will tell where [this is] going to go.” - Capcom’s Yoshinori Ono
In a very odd way, it sounds like the original comments lead to a situation where discussion of this idea could actually flourish. Who knows, maybe this project will have a chance at some point down the road. Thanks to Remo for the heads up!