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KLXVER said:

Because why spend millions upon millions of dollars on games when games like Super Mario, Mario Kart, Pokemon, Animal Crossing, Zelda, Smash Bros. etc. basically outsell all Sony games. Would not make sense business wise. Im sure they would still make some at first, but they would probably bank more on the cheaper games that sell more for the same price as their AAA games.

Because PlayStation first party games are still profitable without needing to outsell Nintendo first party games, and can be further used to grow their subscription service, and transmedia efforts.