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Soleron said:
"AAA" development is just too risky (proof: the bankruptcies and closures). Making games that appeal to everyone with fewer people needed because it's not HD is what Nintendo does because it's a good business decision.

Why would Nintendo get into a crowded and shrinking market?


Well they've moved onto HD development now, as their home console is fully HD... I think the idea has merit, and as Iwata continually states every time there is a software drought: "We must develop attractive software and release them in a timely manner in order to sustain momentum", or variations of that quote.  He says it a lot because at least once a year there is a 3-6 month dry spell where neither one of Nintendo's systems gets any big AAA games and sales slow to a crawl. 

Nintendo itself says all the time that their biggest challenge is always not having enough AAA games.  This solves that problem. 

It would be a slow, gradual process, obviously.  But eventually it would increase their audience in the Western markets by releasing more games like Saints Row or Darksiders, instead of merely making expected sequels to their eight or nine IP every two or three years.  I think it's a win-win.



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