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Squilliam on 05 January 2010
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Procrastinato said:

It's easy to answer the OP question:

(A) Split the Wii's attach ratio into two parts -- 1st party and 3rd party attach.
(B) Consider that 3rd party profit on Wii titles is somewhat less than it is on HD titles, when considering raw numbers sold.
(C) Note that Nintendo is always pleased to announce how the Wii has the "most" titles released each year, and then consider that there are negative consequences to that for the 3rd parties, especially given what you've figured out from (A) above, the lower profit margins per unit from (B), and the greater shelf space competition from (C). This raw statistic is great for Nintendo, however, because it means more licensing fees.

A) Theres nothing wrong with their 1st/3rd party ratio.

B) It wasn't a problem last generation, considering raw units sold.

C + D) A title which stands out and actually gets 'market development' funds will find a place on the shelves. Infact it will push other titles aside. If a game doesn't have any funding on marketing its a crapshoot as to whether or not the retailers believe its going to sell so unit numbers are lower. If a game gets multiple shelf spaces at retail then it sends a message to the games buyer that it might be a title to at least consider. To be successful you also have to look successful in the business, and simply having a lot of boxes on the shelf can do that. Nintendo gets that treatment automatically because they have a good reputation, the third parties need to establish that same reputation. They can only pull the same tricks for so long before the public and the retailers wise up. 

Reputation is one of the things in the business that the publishers are too quick to throw away. Theres no other publisher in the industry that gives an assurance that if you buy one of their products you're probably going to like it to some degree. The same goes for other entertainment industries like Movies where both actors and studios are all keenly aware that releasing a poor product will cost them more than sales at the box office. The greater the potential investment of time/money the more having a great reputation is beneficial.



Tease.