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ECM said:

I like the third option: games cost huge amounts of time, money, and resources to make, and one company can only do so much while supporting two different platforms that aren't directly compatible.

(Just ask Sony and MS and their, in relative terms, anemic first party output.)

Sony's first party output is anemic? They released 8 first-party games last year, compared to Nintendo's 6 first-party games in 2013.