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The programming knowledge did not exist at the time. Its not that they did not have the experience, it was impossible for them to have the knowledge because it did not exist at the time. You can’t really count that against them.
Kaze optimizing Mario 64 is amazing, but it would have been impossible for Nintendo to have programmed the game like that because Kaze is able to use programming technique and knowledge that literally did not exist at the time the N64 was new. Its like saying that the NASA engineers that designed the Atlas LV-3B spacecraft were bad engineers or incapable of making a good rocket design just because of what NASA engineers could design today with the knowledge that did not exist in the 50s.
I never had trouble with MechAssault, because the fun far outweighed infrequent performance drops.
I am a big proponent of 60fps minimum, but I make an exception for consoles from the 5th and 6th generations. The amount of technical leap and improvement, both in graphics technology and in gameplay innovation, far outweighs any performance dips as a cost of such improvement. 7th generation is on a game by game basis, and personally 8th generation (Xbox One, Switch, and PS4) is where it became completely unacceptable to run even just a single frame below 60fps. There is no reason that target could not have been met by then, definitely now. Switch was especially disappointing with this, since Nintendo made basically a 2015 mid-range smartphone but then they tried to make games for a real game console, with performance massively suffering as a result. 11fps, docked, in Breath of the Wild’s Korok Forest or Age of Calamity (anyehwere in the game, take your pick,) is totally unacceptable, even if it only happened one time ever rather than consistently.