While it's all nomenclature, I'm pretty sure that Stu is right in that "2nd Party" was a term used to help identify developer and publisher relationships, rather than explain them every single time.
From what I've gleamed over the years, the common usage of the phrase "2nd Party" is when a publisher (1st party) uses a third party developer to develop a game for them. Some times they may have additional funding from the 1st party publisher, sometimes they will not. Either way, it's easy to say "2nd Party" because it's smack dab in the middle of the other two common terms.
From what I've gleamed over the years, the common usage of the phrase "2nd Party" is when a publisher (1st party) uses a third party developer to develop a game for them. Some times they may have additional funding from the 1st party publisher, sometimes they will not. Either way, it's easy to say "2nd Party" because it's smack dab in the middle of the other two common terms.