Yes, there really is a Mobile Suit modeled after a teddy bear. Beargguy is from Model Suit Gunpla Builders Beginning G and it can fire a particle cannon from its eyes. Shin Dynasty Warriors Gundam has Beargguy in the game as a first print bonus.
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Famitsu magazine also confirmed Legend Gundam and Destroy Gundam for Shin Dynasty Warriors Gundam. The game is slated for release on PlayStation 3 and PlayStation Vita on December 19.
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