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Saying that "Third party games dont do very well on Nintendo consoles" is largely misleading ...

Third party developers (on the whole) rejected the N64 and because of that most of the third party games on the N64 were not particularly good; at the same time Nintendo was focused on providing as many high quality Nintendo published games as possible through First and Second party development which made the situation worse for third parties.

This trend continued at a far lesser level on the Gamecube. The Gamecube's main problem was that Nintendo recieved very little exclusive content from third party developers and many of the games were ported to the Gamecube months after they were released on the XBox or PS2.