They weren't actively against Project M. For the most part, they turned a blind eye to it. It's just in a bit of a legal grey area that makes it the elephant in

They weren't actively against Project M. For the most part, they turned a blind eye to it. It's just in a bit of a legal grey area that makes it the elephant in the room. It definitely provided insight to the competitive scene, but many people forget just how many people play this game casually - items on, no stage bans. Nintendo tries to cater to both audiences simultaneously, with moderate success in Smash 4. Melee catered to the competitive, Brawl to the casual, and Smash 4 has proven itself the most flexible title in the series. I'd say they're doing well as it is.