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Ail said:

So it's all the fault of the evil Third parties.

But lets look at it from Nintendo's point of view.

Does the lack of 3rd party support affect the console sales ? I would say not a lot.

What positive effect does the lack of 3rd party support have ? My Nintendo 1st party are selling like hot cakes....

Would more third party support affect my business ? Most likely a little. better third party would eat into the sholveware sales, as Nintendo I am indifferent to this, I get the same royalty fee on either. But it would probably have a slight impact on my first party sales ( provided we consider than the overall software sales on Wii woudn't increase a tonn , just that the spread of the sales would be different..).

Well, lessened 3rd party sales does cut into Nintendo licensing income, which is significant -- for Nintendo.  They collect money from every unit sold, without having to pay to develop it.

However, if the 3rd parties are merely trying to consolidate budgets, to sell more units per R&D expenditure, that presumably won't affect Nintendo at all -- it'll just be a boon for the 3rd parties.

 

So Nintendo shouldn't care either way, unless the 3rd parties drop support completely.