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Penguin Adventure developer Hideo Kojima dropped by Sony.

I don't know if it counts as shitty but I was surprised to learn late in life that the point and click adventure Nightlong was developed by Team17

Nightlong is an odd case cuz T17 only produced it, the actual development was by an Italian studio that got in touch with them. If we're talking games fully developed by them, Leisure Suit Larry: Box Office Bust is still the champ in terms of badness (Army Men: Major Malfunction too)