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Bodhesatva said:

Third parties are in so much trouble. They're struggling to make money on the PS3/360 due to low install base/high development costs, but they've spent the last decade moving away from the market leader, and now are finding it tough to move back on.

Are they really doing any better on the Wii?  How many new IPs built from the ground up on the Wii have met with a lot of success?  The list is very small and the biggest success for third-parties, Mario & Sonic at the Olympic Games has Mario in the title.

People can point to budget titles and talk about success all they want but how many such titles would a large third party have ot make in order to get the kind of profits they're used to?  The market would be flooded if they attempted to do that.