Acosta said:
Let me offer another perspective:
"This cannot be said enough. If the console with the largest user base by a mile has to put out money hats to get quality 3rd party support than there is something very wrong with that company."
Consider this. Userbase is not everything, and Nintendo has not always been the best partner for third companies, there is a well documented history of this. Perhaps, and only perhaps, there are good reasons that explain why companies don't want to pull their eggs in Nintendo basket.
Or maybe they are all stupid and you know better.
Let's get away from speculating about the reasons for a moment, and just look at the results. (I'm using Captain Smoker's famitsu charts through Aug 9/09, which are a very thorough set of data. (Thanks Smoker!))
Last Gen: (PS2, GC, XBX, DC, GBA)
46.1M units - Nintendo published software
221.7M units - Everyone else
Nintendo's 1st party software was about 17% of the entire market.
3rd-parties (plus Sony & MS) made up about 83% of the market.
This Gen: (Wii, PS3, 360, DS, PSP) (thru Aug 9/09)
95.0M units - Nintendo published software
110.4M units - Everyone else
Nintendo's 1st party software is currently about 46% of the entire market.
3rd-parties (plus Sony & MS) make up about 54% of the market.
So 3rd-parties have basically gone from a combined 83% of the Japanese market, all the way down to 54% of the market this generation.
That is an absolutely massive and stunning drop. And Nintendo all by itself is responsible for nearly half of the entire Japanese market, even though they don't even publish games on three of the five current systems.
Why do you think 3rd-parties collectively have seen such an extreme plunge? Because they've refused to support the market-leading systems. (And yes, the Wii is the clear #2 software platform in Japan - it has sold more total software than the PSP even though it only has 2/3 the userbase of the PSP and even though it has been on the market two years less than the PSP).
Even the almighty DS has seen rather lackluster support from many 3rd-parties. Konami hasn't exactly treated the DS the same way they did the PS2. Capcom has given better support to multiple systems than they have the DS, Namco certainly hasn't put their top efforts towards the DS, likewise for Koei, etc. And then there are some others that have treated the DS very well, such as Square Enix, Level 5. etc.
But on the whole, the DS certainly hasn't received anywhere near the level of top-tier AAA 3rd-party support that the PS2 received, and the Wii has been crapped on by just about the entire collection of 3rd-parties.
3rd-parties have effectively allowed Nintendo uncontested access to tens of millions of Wii and DS customers. Nintendo is one of the only companies regularly putting their top development studios and brands on these systems, and they have taken enormous advantage of the lack of competition from other Japanese publishers.
Has Nintendo been hurt by this disinterest from 3rd-parties? Yeah, but not nearly as much as some people think. (Wii hardware is definitely down because of this, but at the same time, a strong effort from 3rd-parties would likely reduce Nintendo's own 1st-party piece of the pie. But the combination of money lost due to the lower hardware sales, and the lost licensing revenues from 3rd-party software would probably outweigh the money lost due to lower 1st-party software sales. So in the end, I agree with charlequin that Nintendo would be better off overall with a stronger 3rd-party presence. I just don't think they've taken nearly as big of a hit from this as some others believe).
Have 3rd-parties been hurt by their disinterest in Nintendo platforms? Well, just look at their marketshare falling from 83% to 54% in the space of one generation. They've been absolutely ravaged.
charlequin said:
This is illustrative of my point about supporting the market leader, actually. There's nothing inherently wrong about targeting platforms that aren't the highest marketshare systems; there are a variety of strategies that can take advantage of these systems' unique qualities and produce success out of it. Capcom's cross-platform, HD-centric action gaming strategy has broadly paid off, especially with their success in the West, and by limiting their handheld franchises they've also kept their handheld output almost exclusively to huge hits. That's great for them and I can't point at their strategy and say, "man, they should really give the DS and Wii more love."
The problem is that Capcom is literally the only Japanese publisher who has done well with such a strategy, which makes sense when you think about it -- targeting loser systems simply isn't as safe or reliable as targeting winners.
Publishers, as a group, are unquestionably stupid for not betting more heavily on the winning horses (DS, in the pole position, and then PSP and/or Wii depending on how you look at things.) Within this broad category, one can have individual companies betting on other platforms for well-constructed reasons and doing so with workable strategies (I would argue Capcom falls into this category) even while the broad mass of companies are making superficially similar decisions for foolish reasons (and seeing poor profitability as a result.)
This is an excellent summary of the situation. Valid and sensible reasons can be made for any particular game to not go to the DS or Wii. And many publishers operate on a very immediate, short-term vision. So they can justify bringing any particular game to a non-Nintendo system, and the decision makes perfect short-term sense.
But the damage in the long-term has been brutal for the 3rd-parties as an aggregate group. By collectively shunning the Wii (and even the DS to an extent), they have drastically minimized their relevance in the Japanese gaming market - and have slashed their revenues to a brutal degree.
Anyway, charlequin phrased it much better than I could - so I wanted to highlight his thoughts on this matter.