Once a system hits DS levels of penetration, like the NES did, third party games can sell on Nintendo systems. They'll still get their asses handed to them by Nintendo, though, no matter who they are or what they make. At a couple million unit userbase, however, nobody will care less about third party games. Look at the top games for any Nintendo system that's been out in the last 10 years (GB, GBA, DS, GCN, Wii), and you will probably see the top 10 are all Nintendo published. Nintendo may be able to get a 5 million seller, but that doesn't help third parties any. Look at the top 10 for any Sony system, and you will see a couple from Sony and the rest from Square, Enix, EA, Take 2, Konami, Koei, Capcom, etc. As an analyst said recently, Nintendo has not expanded the market. They've simply resegmented it in their favor.
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