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Mar1217 said:

This also assumes that these 3rd party developers/publishers are actually competent to do their marketing on their own.
Square Enix paid out big with it's AA output on Switch when they made them exclusive and published by Nintendo, which also handled the marketing rights.

Octopath Traveler, Triangle Strategy and Live A Live Remake have been success for such reason and Nintendo insistence to market these games to their audience.

Then Square thought they could get the same success by marketing the sequel themselves in a busy, but it was apparent they barely were able to market these games right. Octopath Traveler 2, despite being an all-timer and multiple other AA games from SE received almost next to no marketing from them which inevitably lead to lower performances.

Also, there's the fact a multitude of those 3rd party games would not exist or be founded if not for publisher deals, Bayonetta 2/3, Astral Chain comes to mind on the Switch. There's prolly a few of those as well on the PS5 too.

Nintendo of America also cares about Dragon Quest more than Square Enix USA does.