SIE claimed that the Japanese market was dying anyway so go west. They thought they had it back on the success of the Wii and DS! The DS even got some gems from large Japanese third party publishers!īut no, despite the fact that the PS3 business disaster caused many of the large third party publishers to go bankrupt and/or consolidate, they mostly came running when SIE promised riches overseas with the PS4. They ended up with a bomb in the Cube and a qualified success in the Wii (and a ton of cash and knowledge of where the market was going). Nintendo had been trying to return the market to the SNES days with first lower cost with more power in the Cube, and an expanded audience with the Wii. The Japanese third parties decided to all in with PlayStation and ignore Nintendo except for low budget niche projects. That broke down when PlayStation entered the market and provided better business incentives. That was pretty much how it worked with the NES, SNES, Game Boy phase 1 and phase 2. Nintendo used to think that the natural state of the market was for them to provide some key titles to give a system sales momentum then step back and let the third parties shine in the second half of the system’s life cycle while their internal teams pivot to the next system. That is the story behind the PS5 doing poor software sales in Japan there isn’t enough compelling software for that market to keep providing that software eco system with momentum. No more risks of droughts if a third party suddenly and unilaterally cancels its WiiU/3DS project and moves it to PS4.įurther, the large Japanese third parties are no longer able to supply enough software to sustain sales momentum for hardware. Nintendo created the Switch for two reasons: 1) have hardware that accommodates any play schedule and style and 2) more importantly, it let Nintendo consolidate their software pipeline so they could provide enough software themselves to prevent droughts. The only time Nintendo paid was for Monster Hunter to be 3DS exclusive and that was a special situation that probably won’t repeat again.* The WiiU was stillborn and the 3DS almost failed due to software droughts due to third parties canceling games that were to release during time frames that Nintendo intentionally left open for third party software to shine. Click to expand.Nintendo has even paid in the past and still got burned by large Japanese third party publishers.
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