So... upon receiving the refund, what will happen to the digital items/in-game currency obtained through the microtransactions that the kids made? Will there be a rollback of any kind? Or do they get to keep the stuff?

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Kingdom Hearts 3 is confirmed to be in development. That's it. Pack it up. Show's over. Nothing else matters. Nothing. Sony could announce the Vita 2 and Microsoft could withdraw from making consoles forever and it wouldn't mean a damn thing. Because Kingdom Hearts 3.