Third parties really just need to smarten up ...
Nintendo is a fairly predictable company that (typically) spaces out the releases of their major franchises in order to maximize sales. Nintendo simply will not release two games in a similar genre within 6 months of each other so publishers need to create their high-quality games and be prepared to space out the release in relation to Nintendo's big franchises.
As an example, there was a perfect opportunity to release a high quality fighting game anywhere between January 1st 2007 and (about) October 15th 2007; after this cut off we see Dragon Ball Z: Budokai Tenkaichi 3, Naruto: Clash of Ninja Revolution, and Godzilla: Unleashed being released. Most games would be better off delaying their release by 6 weeks around the release of a Nintendo game of a similar genre but choose to go head to head and lose sales.
