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I'm not too sure your title suits the thread. Basically I get out of your thread that Western devs are on the verge of collapse because of Nintendo.

I wouldn't normally comment on this thread, but developing for Nintendo isn't the end-all be-all of the gaming industry. Currently Western devs are on the verge of collapse because of years of typical US business strategies (i.e. cultural differences between Japan and US). US companies culturally focus on near-term growth and profit, often times taking large risks in the process (blockbuster movies/games), this is almost opposite to Japanese culture, where companies are attempting to insure more long-term goals. This will lead Japanese companies to be more conservative and taking less risks. So this being one of the main reasons why Japanese companies are less likely to be impacted by a series of poor decisions.