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Not true about the whole thing of Oddworld going to Microsoft. OWI had made a contract with Microsoft that their next three games would be on the X-Box only before MO was brought before the public. However, I think someone had died and let OWI publish games for other systems. I forgot how, but that was what happened. Why SW was X-Box only is a different story. Blame EA games for that.
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Microsoft initially contracted OWI to develop four games to be published by them exclusively for Xbox. When Ed Fries and Seamus Blackley left the Xbox team, the company stopped supporting several off-beat, original games (such as SW and Psychonauts) and focused instead on sports games and shoot em ups. This cleared OWI of their exclusivity deal and they were free to sign up with EA and hire an outside company to develop a PS2 port. Lorne said in interviews that he was impressed by how good the port was looking. Unfortuneatly, the company wasn't able to complete the port in time for a simultaneous release with the Xbox version so EA dropped them and any promotion of the game. So if you want to blame the absence of a PS2 port on anyone, it should be on that anonymous company rather than EA.