MLP x Yo-kai Watch - Concept

HOW TO PROPERLY CROSSOVER MY LITTLE PONY AND YO-KAI WATCH (as I just now thought up while showering):

The story starts with a brief scene at Twilight's castle, where Twilight sends Spike on an errand to Zecora's for some things. Spike goes, as he can be brave.

However, he wanders off the path and into a clearing with a tree and what looks like an old capsule machine - which he recognizes as such from similar machines recently installed in Manehatten restaurants which I'm pretty sure he visited at... some point.

He puts a coin in, since he's got the spare change, and twists the handle and gets a capsule. He opens it and inside is what is, for the sake of all appearances, a toy watch. Happy with his new thing, he puts it on his left wrist.

Then it starts doing weird shit. The hands spin. Weird winds and sounds. Suddenly a pulse of strange magic shoots out all over Equestria. Then a white ghost emerges from the watch, shouting "FREEDOOOOOOOM!"

Spike is scared as hell at first, but the ghost introduces himself as Whisper the Yo-kai butler. He's in fact from another world, the Yo-kai World, which used to exclusively lie... either underneath or parallel, I'm not that far in yet... to a different world, but Spike putting on the Yo-kai Watch connected his world to it as well. Now the recently dead and dying from now on will become Yo-kai.

Spike does the first thing that he would do in this situation: he runs to tell Twilight about it. Whisper tries to stop him, telling him that only he, as the wearer of the Watch, can see Yo-kai, so telling her would be pointless. But Spike is eager to tell Twilight, because something crazy like this is up her alley, she should really know.

However, when he gets back to the castle, Twilight is not only upset with him for forgetting to run his errand at Zecora's, she's unable to perceive or understand the Yo-kai Watch as anything more than a toy watch. Whisper says this is a natural function of the watch, as mass knowledge about the existance of Yo-kai amonst a living populance tends to result in bad things like rampant paranoia and fear of the creatures they can't see.

Twilight gets enspirited shortly afterwrads by I don't know who, but definitely not Dismerlda, which allows Spike to learn how to use the watch to see Yo-kai and the basics of "negotiation or confrontation." Yo-kai from the Yo-kai World are quickly moving into Ponyville and other cities and places around Equestria, causing a massive rise in the number of strange and mysterious incidents. Feeling responsible, as he put the Watch on in the first place (and can't take it off, of course), Spike resolves to try and make friends with the Yo-kai, so that the two worlds can develop a mutual  bond of co-existance.

And /that's/ how to do a crossover of My Little Pony and Yo-kai Watch.