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SALES-AGE: Why the Wii will be getting Japanese exclusives, but not Western. Part II.

legend166

Member
plufim said:
Oh come on. Are you honestly saying that reviews were ever that influential in game sales? If that were the case, EA would be done and dusted by now. They make some great games (drool burnout), but some of their highest sellers are nothing much more than graphical updates that do not review well.

edit: ah frack, double post. Apologies.


EAs graphical updates got reviewed very, very easily for a long time. Sites/mags were pushing each other over to give the latest Madden a high score. Same with their other sports titles.

Only recently are they changing.
 
Haunted One said:
7wpapdy.gif


That's exactly what I've been doing this gen.
Mii too :lol
 
Dalthien said:
I don't disagree with your overall point, but I'm not sure how effective 'little funding nudges' would really be.

It's not really about getting "the biggest franchises," but rather about building a healthy ecosystem. The titles that we think of as the biggest AAA franchises from last generation were, by and large, going to go HD this generation regardless of Nintendo's actions. What Nintendo needed to be pushing for earlier (or should start pushing for now) is fully-realized, high production value titles with new or revived IPs that fit into the Wii's "style." If a certain amount of RPGs, platformers, action-adventure games, third-person shooters (in the RE style), etc. come out for Wii and enough of them are successful, other companies will pursue the money on the table.

And Nintendo really has no interest in committing significant resources to help other publishers. Their mindset is that their money and manpower is most effectively used in building and promoting their own 1st-party efforts.

Er... right, that' the attitude that I described (and criticized). Nintendo is almost unquestionably reducing the profitability of the Wii platform in the long run by doing so, but for all the various reasons (conservative culture, nobody skilled at third-party interaction, etc.) they're going to keep doing it anyway.

Yes it does, but plenty of HD software also sells poorly. And the Wii is certainly no slouch in the software department.

Right, but.... At the moment, the "HD platform" is still about as large as the Wii, and arguably produces a better sales return per title for a third party developer. That's all that's needed as a reason to stick to that platform for publishers that have other reasons for preferring not to heavily support the Wii.

For companies like EA, their entire structure is built upon giving their broadest support to the mainstream systems.

I don't know that that's really true as a general statement. EA's a big company that makes money in volume by hitting a broad or mainstream audience, but hitting the "mainstream platforms" isn't necessarily how that's accomplished -- look at the money they make in the PC gaming field, for instance. Anyway, EA's been posting huge record revenues recently and are the #1 Wii third party in US sales, so I'm really not sure that a conclusion that they're suffering business losses as a result of poor commitment to the Wii platform is warranted.
 

Jokeropia

Member
DarkMage619 said:
I think the Wii does nothing but show how well Nintendo titles sell on a Nintendo platform.
Well, you should do some actual research before spouting nonsense then. Wii, in it's first 18 months, sold more third party software than both the 360 and PS3 did in the same time-frame.
 

jarrod

Banned
charlequin said:
It's not really about getting "the biggest franchises," but rather about building a healthy ecosystem. The titles that we think of as the biggest AAA franchises from last generation were, by and large, going to go HD this generation regardless of Nintendo's actions. What Nintendo needed to be pushing for earlier (or should start pushing for now) is fully-realized, high production value titles with new or revived IPs that fit into the Wii's "style." If a certain amount of RPGs, platformers, action-adventure games, third-person shooters (in the RE style), etc. come out for Wii and enough of them are successful, other companies will pursue the money on the table.
I agree with all this, especially the last part. For example, NCL aren't ever going to get FFXIII or SO4, so why not talk up Kawazu and get a big budget Romancing SaGa 4 or something off the ground? Ask Namco about a new Klonoa, Xevious or Druaga? Maybe broker a deal between SEGA and Camelot for Shining Force 4? I think there's a ton of formerly big unused IPs just wasting away, and with the recent retro craze (on their own platform especially) the time would be ripe for Nintendo to step up and convince some of their partners to go for it. A few are doing it on their own (Capcom with MM9, Hudson with tons of stuff) but Nintendo's largely been hands off, prefering to target on big brand spinoffs (DQ Swords, REUC) or secondary tier PS grabs (MH3, Fatal Frame).

Not having FFXIII, Vesperia and SO4 might not be such a big deal if they had a lineup of say Romancing SaGa 4, Phantasy Star V, Tengai Makyo IV, Ys VII, Shin Megami Tensei IV, Shining Force IV, Dragon Quarter II, Seiken Densetsu 5, Ogre Battle, Grandia 4, Front Mission VI, Suikoden VI and others to counter that. Stuff like KOR and Shiren 3's a nice start, but they really need more imo.


charlequin said:
Er... right, that' the attitude that I described (and criticized). Nintendo is almost unquestionably reducing the profitability of the Wii platform in the long run by doing so, but for all the various reasons (conservative culture, nobody skilled at third-party interaction, etc.) they're going to keep doing it anyway.
Well, to be fair, this seems largely more of a western problem... NCL has great relationships with all the large JP publishers. Just look at Square for example, NCL's already done 3 active collaborations with them this gen (Mario Hoops, Itadaki DS, DQ Swords) versus just one with Microsoft (IU) and none for Sony.

Nintendo's not investing heavily like MS or Sony are in the new startups like Q! Entertainment, Mistwalker or Game Republic, but I'd say they're actively working more with the big established companies generally (Namco, SEGA, Square Enix, Bandai, Capcom, etc).
 

Vinci

Danish
DarkMage619 said:
I think the Wii does nothing but show how well Nintendo titles sell on a Nintendo platform. Congrats to Nintendo.

Honestly, I don't know why Jokeropia even bothers with you. I see him tout the 3rd party software sales on the Wii EVERY SINGLE THREAD ABOUT THE SYSTEM. I bet you could find hundreds of mentions by him alone, not counting anyone else who bothers to pay attention to the sales figures. Which you obviously don't.

I still think that 3rd party developers are better served by spending time and resorces on platforms that don't see them as adversaries but as partners. Both Sony and MS would not be where they are if it wasn't for great 3rd party support.

Big fish, little pond. Or something along those lines. Are you suggesting these companies don't want to maximize their potential for profit?

Nintendo has never really needed it.

So 3rd parties get to act as a crutch to novices whilst not riding the coattails of a company that knows what the hell it's doing? Good strategy.

Do I think that if companies like EA and Ubi continue to support MS and Sony consoles, or as you so eloquently stated 'HD egg baskets', that their titles will somehow become irrevelent? HECK no. I think the market is perfect the way it is. There is a place for everones software and I wouldn't have it any other way.

But you're arguing that they fade from the limelight and become niche game publishers. Do you really think that's okay with them? When you're targeting a very small subset of the total game-buying public, you're a niche developer. You're suggesting that EA and Ubi become the new NIS. They won't be happy with that, not for long. Yes, they can sustain themselves through this generation, but the value system of this industry is changing (thanks to Nintendo's disruption) and if they don't create some degree of positive mindshare with its new consumer base, they're going find themselves developing hugely expensive titles and marketing them towards a diminishing population.

Hint: There is a place for everyone's software on the Wii and its successor (which is going to see a truckload of 3rd party support). And publishers better start grabbing a place if they want to be as relevant next time around as they are this time.

I can appreciate what Nintendo has done but I do not think they should get more 3rd party support because of it.

No, they should get more 3rd party support because 3rd parties want to make more and more money. It has nothing to do with Nintendo.

They don't need it and they don't make consoles with 3rd parties in mind.

No, they lay the foundation for the system's success and then get the hell out of the way (if they can; see the DS). If 3rd parties don't jump onto the Wii, Nintendo will simply produce more and more software for it and amass a level of profit that'll be untold in this industry's history. [For example: Imagine if the PS2 had been just as huge but with Sony producing 85% of the marketable titles.]
 

Flakster99

Member
Vinci said:
Honestly, I don't know why Jokeropia even bothers with you. I see him tout the 3rd party software sales on the Wii EVERY SINGLE THREAD ABOUT THE SYSTEM. I bet you could find hundreds of mentions by him alone, not counting anyone else who bothers to pay attention to the sales figures. Which you obviously don't.

For future reference:

Flakster99 said:
First 18 months software units (US):

Wii - 50 million (not including Wii Sports)
X360 - 28 million
PS3 - 20 million
PS2 - 42 million

First 18 months hardware units (US):

Wii - 9.5 million
X360 - 5.2 million
PS3 - 4.2 million
PS2 - 8.5 million

http://kotaku.com/5010214/nintendo-wii-has-highest-software-sales-for-first-18-months

45.jpg


Running the numbers for 3rd parties:

1st chart - 7.77 million (4.58 million 3rd parties)
2nd chart - 11.61 million (4.87 million 3rd parties)
3rd chart - 32.67 million (19.60 million 3rd parties)

52.05 million total = 29.05 million from 3rd parties total.

Wii 3rd party software = 29.05 million
X360 total software = 28 million
PS3 total software = 20 million

I garnered these numbers via utilizing the American software figures provided by Nintendo in their quarterly investor relations reports. Subtracted a figure equal to the hardware numbers to remove Wii Sports. This gives me the totals for each quarter minus Wii Sports. I then used the software ratio provided by Nintendo's chart to calculate the total 3rd party sales for each of the 3 chart segments.

Nintendo's investor relations information including the software and hardware sales data per quarter as well as the 1st party vs 3rd party chart can be found here:
http://www.nintendo.co.jp/ir/en/index.html
 
jarrod said:
I think there's a ton of formerly big unused IPs just wasting away, and with the recent retro craze (on their own platform especially) the time would be ripe for Nintendo to step up and convince some of their partners to go for it.

This is exactly why Mega Man 9 is a great announcement. I'm pretty much in agreement with the other sorts of titles you list as well -- a few RPGs or platformers with recognizable IPs, or a "spinoff-with-core-gameplay" RE (along the lines of Code Veronica) would do a lot to change the perception of Wii as a non-game machine, and a few of those selling well would help get others on board.

NCL has great relationships with all the large JP publishers.

This never really seems to translate into much well-chosen software, though. Nintendo hasn't convinced Namco to lend back out its Baten Kaitos property for DS and Wii titles, or gotten Suikoden or Breath of Fire 6 to launch as a Wii exclusive, or nabbed Klonoa or Katamari or anything of that sort.
 

djtiesto

is beloved, despite what anyone might say
jarrod said:
Not having FFXIII, Vesperia and SO4 might not be such a big deal if they had a lineup of say Romancing SaGa 4, Phantasy Star V, Tengai Makyo IV, Ys VII, Shin Megami Tensei IV, Shining Force IV, Dragon Quarter II, Seiken Densetsu 5, Ogre Battle, Grandia 4, Front Mission VI, Suikoden VI and others to counter that. Stuff like KOR and Shiren 3's a nice start, but they really need more imo.

Just having that alone would make the Wii the best gaming platform in history. Actually, a Tengai Makyo V could work very well for Wii, since Hudson is a big supporter of the platform.

My dream for the Wii right now is a 2D RPG with SNES style graphics for the downloadables.
 

Dalthien

Member
charlequin said:
It's not really about getting "the biggest franchises," but rather about building a healthy ecosystem. The titles that we think of as the biggest AAA franchises from last generation were, by and large, going to go HD this generation regardless of Nintendo's actions. What Nintendo needed to be pushing for earlier (or should start pushing for now) is fully-realized, high production value titles with new or revived IPs that fit into the Wii's "style." If a certain amount of RPGs, platformers, action-adventure games, third-person shooters (in the RE style), etc. come out for Wii and enough of them are successful, other companies will pursue the money on the table.
I guess we can agree to disagree. I think Nintendo has done an adequate job of courting 3rd-parties for the B/C level games. Just off the top of my head, the Wii has received or will be receiving King's Story, Trauma Center, Samba de Amigo, Shiren, Oboro Muramasa Youtouden, Opoona, Boom Blox, Tales of Symphonia, Fragile, Final Fantasy Crystal Chronicles, De Blob, Deadly Creatures, Arc Rise Fantasia, Super Monkey Ball, Star Wars Clone Wars, MLB Power Pros, SimCity, Red Steel, No More Heroes, Zack & Wiki, Chocobo, Tenchu, Endless Ocean (3rd-party dev), Manhunt, Mega Man, Lost Winds, We Love Golf, Elebits, MadWorld, Nights, Monster Hunter, Fatal Frame (3rd-party dev), Spyborgs, Harvest Moon, etc., along with spinoffs to popular franchises such as Dragon Quest Swords, Resident Evil Umbrella Chronicles, Sonic & Secret Rings, Rayman, Soul Calibur Legends, Castlevania Judgment, etc.

I know you think that Nintendo should be trying to get even more B/C level stuff from pubs, but I don't really think several more games along those lines would make a huge difference. That list I gave is quite strong for B/C level stuff, covers a wide range of genres, includes both well-established franchises as well as new IP. And there is undoubtedly a fair amount of new stuff which has been greenlit recently that we don't know about yet.

What is missing from the Wii are the AAA level titles from 3rd-parties. Stuff like Final Fantasy XIII, Metal Gear Solid 4, Assassin's Creed, Call of Duty 4, Elder Scrolls Oblivion, Grand Theft Auto IV, Ninja Gaiden, Devil May Cry, Mass Effect, Bioshock, Yakuza, etc. Stuff where the publisher allocates the top in-house development teams, top franchises, top budgets, and puts it all to work on a game for the Wii. And as you admitted yourself, Nintendo wasn't going to get any of those efforts from publishers at the start of the gen.

Going forward, things will probably change somewhat in Japan. Monster Hunter is already coming to the Wii, and I'd be surprised if full-fledged entries from Kingdom Hearts and Dragon Quest don't hit the Wii by the end of the generation. So the top teams, budgets and franchises will begin finding their way to the Wii from the Japanese publishers, in large part because of the utterly dismal performance of the HD systems.

In the west, it will be a slower transition, and maybe even a weak transition - because there is enough of a pull from the HD systems in the west to make it difficult for the publishers to know how to transition to the Wii without sacrificing the large investments that have already been made on the HD systems. I still stand by my belief that western publishers very much want to participate in the success of the Wii - they just don't know how to go about making such a striking transition in the middle of a generation, when they've already spent so much time and money and research on the HD systems, where the engines and development teams and assets were set up and budgeted for multiple games, sequels, reuse of assets, etc. in order to get an effective return on the money spent.
 

carlnunz

Member
Sorry to bump this thread, but I was just wondering how people think companies likes Square Enix and Capcom - who rely on western sales to a large degree, will treat this phenomenon. Wii, despite solid sales for its 2 square offerings and the DS' huge amount of SE support, has yet to see much from the publisher, who still seems to be on the HD Ship.

Any chance of increased Square support you think?
 

Arde5643

Member
carlnunz said:
Sorry to bump this thread, but I was just wondering how people think companies likes Square Enix and Capcom - who rely on western sales to a large degree, will treat this phenomenon. Wii, despite solid sales for its 2 square offerings and the DS' huge amount of SE support, has yet to see much from the publisher, who still seems to be on the HD Ship.

Any chance of increased Square support you think?
SE must be taking notes of Cap-port's HD games port-fiesta to the Wii right now.

They would never want to miss so much revenue coming in from Wii-ports if they can.
 

CTLance

Member
I think it will be happening. Only... sometimes in the future. Wii is just too successful for them to ignore it. Nonetheless, they have all their staff wrapped up in HD megaprojects, and quite comfortably so. I'd bet any amount of money that Sony and MS are doing everything in their power to keep development as troublefree and comfortable as possible.

Maybe they're trying to gather some new talent on the sides and shift in some experienced staff to help, but even then it'll take quite a bit of time until the public will see something.

Also, obligatory whine: Boo hoo I miss PantherLotus
' charts
.
:´(
 

apujanata

Member
Arde5643 said:
SE must be taking notes of Cap-port's HD games port-fiesta to the Wii right now.

They would never want to miss so much revenue coming in from Wii-ports if they can.

If Capcom keep on porting their games to Wii, and keep on getting better than expected sales (see RE0 Wii 21K first week sales # in Japan) in Western market, I am sure other Japanese company, who also focus on Western market, will follow suit.
 

Gaborn

Member
Arde5643 said:
SE must be taking notes of Cap-port's HD games port-fiesta to the Wii right now.

They would never want to miss so much revenue coming in from Wii-ports if they can.

Are you suggesting a FFVII Wii-Make? Because I like your suggestion.
 
Gaborn said:
Are you suggesting a FFVII Wii-Make? Because I like your suggestion.
I do too, but not because I'd particularly want to play it. It's just that the GAF thread would be a meltdown-fuelled bloodbath of bannings, gifs and photoshops. It would be glorious.
 
Have you guys seen the latest June NPD, how the two Nintendo systems dominate the software Top 20? It has been debunked for a while now, but that data further debases the third-party myth. Things are changing, and FAST.
 
TheGrayGhost said:
Have you guys seen the latest June NPD, how the two Nintendo systems dominate the software Top 20? It has been debunked for a while now, but that data further debases the third-party myth. Things are changing, and FAST.
Humm, link? Aint paid much attention to them.
 

manueldelalas

Time Traveler
viciouskillersquirrel said:
I do too, but not because I'd particularly want to play it. It's just that the GAF thread would be a meltdown-fuelled bloodbath of bannings, gifs and photoshops. It would be glorious.

That day will be baptized the Error 500 Day
 

ZealousD

Makes world leading predictions like "The sun will rise tomorrow"
viciouskillersquirrel said:
I do too, but not because I'd particularly want to play it. It's just that the GAF thread would be a meltdown-fuelled bloodbath of bannings, gifs and photoshops. It would be glorious.

There would not be enough popcorn in the world.
 
D

Deleted member 17706

Unconfirmed Member
*Guaraná said:
FFVII remake on Wii would be bigger than XIII version on 360.

Definitely.

I think it would work just fine, though. FFVII Remake doesn't need to be HD in my opinion. If it looked like an improved version of Crisis Core then I would be happy and that is more than possible on the Wii. I would, of course, prefer it be on the PS3 / 360, though.
 

Arde5643

Member
Zefah said:
Definitely.

I think it would work just fine, though. FFVII Remake doesn't need to be HD in my opinion. If it looked like an improved version of Crisis Core then I would be happy and that is more than possible on the Wii. I would, of course, prefer it be on the PS3 / 360, though.
If I have a PS3/360, that would definitely be the case as well.

It would be great if the big publishers can come up with a scalable engine that can work in either HD consoles or the Wii.

Of course, with the Wii being so weak, that will probably never happen. :/
 

Pachael

Member
Regulus Tera said:
http://www.neogaf.com/forum/showthread.php?t=327665

npd_chart_june2008.jpg


Pay close attention to the top-selling versions of the multiplatform games.

Wii multiplat > 360 multiplat > PS3 multiplat where available.
And this is in a month where MGS4 was released!

I say the wii will get more Japanese exclusives in a matter of time - that said, the value of an exclusive is low to certain posters (eg. FF - OMG versus Sonic and his friends - bleh)
 
The shift is already happening and it will get more pronounced in the next 12 months.

Most Japanese publishers should be deeply entrenched into Wii development by this time next year, and the Wii should seldom get gimped versions (except the obvious stuff for technical reasons) of multiplatform games from western publishers.

It's not that bold of a prediction, I know, but it's interesting watching the whole thing unfold in front of my eyes nonetheless.
 
If third party publishers don't get crackin with games for the Wii audience, they're going to be left way behind next-gen and next-next-gen, barring any big disruption by Sony or MS, which is incredibly unlikely at this point. This is the waggle era, this gen isn't for huge profits, the next-gen is where it's at, it's where this gen's biggest IP's will start raking in the dough with the sequels. Nintendo is just happening to make plenty of profits this gen because they're basically the only one that gave the Wii their full support. You think they're making heaps now? Wait for next-gen and see how much Nintendo is going to rake in.
 

Neomoto

Member
This year has painfully proven that if you are a 3rd party and you have a mainstream game that likely will sell well, you need a Wii version (and DS version if possible too) or you'll miss out a lot of sales. It'll be interesting to find out if there is infact a FPS audience on Wii. If Call of Duty World at War sells a lot (doesn't matter if it's less than the x360 version), then you'll likely see a lot of 3rd parties suddenly putting out Wii versions of their FPS titles. Because the FPS genre isn't really present on Wii as of yet, and most big sellers in the US are just that.

It would also be interesting to find out what kind of game GTA Chinatown Wars will be. Depending on what it is, it could be considered a big western exclusive imo.

BishopLamont said:
If third party publishers don't get crackin with games for the Wii audience, they're going to be left way behind next-gen and next-next-gen, barring any big disruption by Sony or MS, which is incredibly unlikely at this point. This is the waggle era, this gen isn't for huge profits, the next-gen is where it's at, it's where this gen's biggest IP's will start raking in the dough with the sequels. Nintendo is just happening to make plenty of profits this gen because they're basically the only one that gave the Wii their full support. You think they're making heaps now? Wait for next-gen and see how much Nintendo is going to rake in.
I agree. Nintendo is laying the foundation for mindblowing succes (this gen and beyond). Virtual Console. WiiWare. Controllers (Wiimote, Nunchucks, Classic Controller, Balance Board, Wii MotionPlus sell gangbusters). Everincreasing 3rd party support (Nintendo's next system will launch with great 3rd party support from the get-go). New casual IPs from Nintendo (Nintendo currently holds the top 9 out of 10 best selling games this generation). Even their own established games sell better and faster then previous installments. Animal Crossing Wild World went through the fucking roof. Mario Kart DS >> All other Mario Karts (more than 11 million and still selling). Mario Party Wii and DS >>>> All other Mario Party's. To name a few.

Arde5643 said:
If I have a PS3/360, that would definitely be the case as well.

It would be great if the big publishers can come up with a scalable engine that can work in either HD consoles or the Wii.

Of course, with the Wii being so weak, that will probably never happen. :/
An upgraded Call of Duty 4 engine (World at War) is running perfectly on Wii. And it looks quite amazing too. The Wii isn't that weak, the developer said CoD:World at War also isn't different between the versions, except for HD graphics.

EA managed to get the complete Stake engine on Wii too, including graphics capabilities, engine, camera and physics/animation.

It's all about effort. I'm sure a couple of bigger multiplatform titles like the Lego games have comparable engines too.
 

Proven

Member
*sigh* I really looked forward to Panther Lotus' response after the way E3 went down.

I also echo the sentiments throughout this thread that the Wii is a lot more analogous to the PS1 than to the PS2.
 

Tmac

Member
I still dont see how you have to choose something instead of other. Wii is great, but has a different audience, it created its own in many levels. That's way its not a merely a sucefull product but a revolutionary only.

That being said, the "old" market still exists where it always has been. And old style softwarehouses will be able to do exactly what they did in the past, and do well.

What i can see is a shift in development of some games like lego franchise, movies franchises, etc, where, instead of being developed based on 360 or ps3, they'll be deved for wii and ported to the later.

Also, new genres, like the ones we know now (FPS, RPG, JRPG, FIGHTING, ETC) will emerge.
 

Gwanatu T

Junior Member
Neomoto said:
An upgraded Call of Duty 4 engine (World at War) is running perfectly on Wii. And it looks quite amazing too. The Wii isn't that weak, the developer said CoD:World at War also isn't different between the versions, except for HD graphics.

EA managed to get the complete Stake engine on Wii too, including graphics capabilities, engine, camera and physics/animation.

It's all about effort. I'm sure a couple of bigger multiplatform titles like the Lego games have comparable engines too.

It's nice to finally have this too. I know it's only been a year and a half, and it took longer than that to have something truly worth buying a PS2 for (if memory serves me correctly), but I'm just so impatient some times. It's probably just the stigma attached to Nintendo from a 3rd party perspective from the previous 2-3 generations, but it seems like publishers and developers just don't get the Wii and it's success, and now it looks like companies are finally scrambling to catch up.

Proven said:
I also echo the sentiments throughout this thread that the Wii is a lot more analogous to the PS1 than to the PS2.

You know, that really is a great analogy, and it's really true too. I never thought of it that way either, because Nintendo is paving the way for something completely new and something incredible next-gen. With all these add-ons for the Wii bringing more and more interactivity in pretty large steps each time, I can only imagine what is going to happen with their next console.
 

Kilrogg

paid requisite penance
Gwanatu T said:
You know, that really is a great analogy, and it's really true too. I never thought of it that way either, because Nintendo is paving the way for something completely new and something incredible next-gen. With all these add-ons for the Wii bringing more and more interactivity in pretty large steps each time, I can only imagine what is going to happen with their next console.

Actually, if we have to the analogy route, the Wii is more akin to the NES, really. Low tech, low pricepoint, lots of accessories, comes with an incredibly popular game, introduced video games to people who weren't into it, takes the whole family approach, and is deliberately shunned by some publishers and developers. Just like EA at the time.
 

Vinci

Danish
Tmac said:
That being said, the "old" market still exists where it always has been. And old style softwarehouses will be able to do exactly what they did in the past, and do well.

The 'old market' will do fine this generation by focusing on the PS3 and 360 as the 'HD entity,' but how long is that going to last? The point is that if they want their franchises - their big ones - to carry over into next generation with as large a playerbase as possible, they need to create inroads with the market that Nintendo has temporarily pretty much to themselves. The importance to this is simple: If they're not careful, they're going to be seen as niche developers catering to a market (and spending immense amounts of money) that is frankly much smaller. That's not what stockholders want to see; that's not what keeps these companies' boards happy.

Every core game that succeeds on the Wii shows them that, yes, there's a market for those sorts of games here. "So why are we spending X amount of dollars and producing one potentially successful game when we can spend X amount of dollars and produce two or three of them, particularly on a platform that is running away with the generation and its successor will likely be the hot-bed next generation?" Because the cost of these HD games isn't simply about money; it's also about manpower. It takes larger teams to produce them, which cuts into a developer's output and forces it to basically bet a lot more on each game. Maybe Western developers don't think that far ahead, but Japanese businesses do - and that's why we're seeing a small but noticeable shift towards the Wii in that country. Add to that the fact that many Japanese developers state that they feel they can't compete very well with Western ones on the HD systems, and the Wii is the perfect chance for them to get a leg-up on their overseas counterparts.

It's a situation where marketshare next generation, at least for 3rd parties, will come from mindshare this generation.
 
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