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zippy said:
If Nintendo expanded and got more in house studios to pump out their great games at a faster rate, we wouldnt even have a 3rd party situation, They would be rendered obsolete. I honestly dont know why Nintendo dont just do away with 3rd parties and create a bunch of garage teams. Let Retro handle western style games, and aquire somebody like Shinen who have a great track record with Ninty hardware, to make racers and action games.


I think this notion is more fantasy than reality. 

In the last 30 years of home console sales, the only console to sell more than 35 million units (generally the threshold to consider something a strong success) have been home platforms that have all/most of the major third party software. 

The only exception to this is the first Wii, which didn't really do anything to the PS2 marketbase (that just got split between the PS3 and 360), it just attracted a different crowd of non-gamers like fitness focused women and the gamers it did sell to used it a secondary "family fun/party with friends" machine for a couple of years before disgarding it. 

The truth is even the NES and SNES probably would also have sold only about 20 million units each if you stripped both of them of their third party support. Ditto for the Playstation, PS2, PS3, and XBox 360.