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Intro:
https://www.youtube.com/watch?v=WH9UFtrENjA
Gameplay:
https://www.youtube.com/watch?v=2YOGbq1lfHw
I've actually come to prefer some of the designs better in Cross Rays too.
SRW gives you a bit of a hybrid of both, the actual battle sprites are somewhat chibified (not to SD levels), but some of them have full cut-ins that make it look like it's right out of the movies or shows.
Yeah it made sense to use SD or Chibi forms on things like Gameboys since the resolution is so small. Doesn't have the same value today when even phones are running 4k and the latest Nintendo handheld is up to 1080p.
In the game's narrative it doesn't even matter at all, to the characters in-game these are just the proper machines (only Superior Dragon being referred to as "the cute one").
I'd still like to see RG- or MG-versions of Sisquiede and the Phoenix Gundam tho.
I'll take some HG versions too.
People are allowed to have different tastes from you and the game sold well in the west.
So they went SD and as they did good they just left it as a brand thing while saving money.
A super-deformed version of a design isn't less or more expensive to licence, because you still have the same character likenesses, the same model names, the same base designs, the same music if you're a Premium G Sound Edition player, and most importantly, the same series name. You still have to negotiate with the appropriate networks and people if that's a barrier preventing you from including this unit/pilot in the game otherwise (like Gundam Sentinel as explained above).
From the SD Gundam G Generation wiki page regarding size:
"This may be to prevent problems with the different proportions used in various Gundam series, but a larger reason may be the fact that Sunrise has been known to charge a heavy licensing fee for full-sized versions of their mecha to appear in video games, a problem which also plagues the Super Robot Wars series of video games."
Also, commercially SD figures where really popular in the 90's among kids.
True, some of the more recent ones did get a good bump in quality. Too many stickers, still.
https://twitter.com/bk2128/status/967419047078903808
the post above pretty much describes how serious they are about these things
But, I'm guessing that TouyaShiro wants something more substantial than just hearsay or something from Twitter or a Wiki. Probably something like a press release or something similar. However things like this are probably discussed behind closed door at board meeting or similar.