And yet they've re-released it on the PS3, the PS4, the Wii, the Wii U, AND the Switch. Why would they keep doing that if it wasn't so beloved?
Because at this point forward-porting it is easy and makes them money. It's not like they've remastered the assets or fixed anything or made the opening cutscene skippable or made use of a given console's special features or added new bonuses… (like they did for the Wii controls) its just direct ports. (They put a tiny bit of work into making HD for the PS3, but didn't truly upscale the textures or anything so its looking its age now.) Much like the umpteen re-releases of MegaMan. It's fairly cheap to re-release it, it has some fans,, there's no reason not to.
Heck, Okami on the PS4 doesn't even have new trophies, it shares the same list as PS3 so you can't even plat it a second time.
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I thought God Hand killed their studio.
Nope, they were already done before God Hand was released… is a large part of the reason that game was so unpolished and unfinished. They put it out just top put it out before their doors closed, but even reviews at the time taked about how it was a shame it was Clover's last game.
Its crazy because Okami was super praised and even won several game of the year awards but it was just... too niche. Maybe if it had looked realistic instead of like a Japanese painting it would have done better? But then it would have also aged super badly..