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While I agree with the 3DS support going on way longer than it should, I wouldn’t say that it was Nintendo that killed AlphaDream.
Most often a company commissions a game from a studio and its up to the studio to not only negotiate a good deal but manage their money, they would also likely receive a bonus if that game sold well. AlphaDream was likely the ones who pitched the remakes for the 3DS instead of moving onto the Switch, they are a small team and the engine made from Dream Team was likely a way to save money. Unfortunately it seems to me that they should have been more focused on preparing for next gen development, this feels a bit similar to how GameFreak took so long to move out of the 3DS.
.... also Paper Jam took heavy inspiration from Sticker Star, the cursed Mario RPG.