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I think this would be a good thing for both Microsoft and Nintendo, but mainly Nintendo - since their 3rd party support is weak. Smartglass and the Wii U could create a super audience that developers could take great advantage of. Like how the PS3 & X360 acted as a super huge audience for developers to take advantage of. The similarities between the PS3 & X360 resulted in great 3rd party support for both of the consoles. They really helped each other in this aspect. I think the same could happen with SmartGlass and the Wii U.

Developers may be sceptical that the Wii U is big enough to sell their games, but with the help of SmartGlass, they could see a great oppurtunity in making a ports for both versions. This also works vice-versa, developers could initially make a smartGlass title, and then decide to port it to the Wii U for easy money. This would result in more games for both Nintendo & Microsoft. Hell even the Vita-PS4 combo could help out. This would create a three-way super mega audience of tablet gameplay for 3rd party developers! This could be great for all companies. It's going to be interesting to see how this all works out. At least, this is how I hope it works out.