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Azzanation said:

Thats just an assumption on the Devs part. If we can see 3rd party devs out preform 1st party devs, then it just proves that's not true.

A small example below,

Spiderman 2: a 1st party game, released with many game breaking bugs.

Balders Gate 3: a 3rd party game, released more polished and had to release on everything.

It all falls under the quality of the Devs, not the amount of hardware it releases on.

I must add, you may have chosen two of the worst possible examples for making your point: BG3 is infamous for suffering from some major bugs and glitches later on in the game. Also, SM2 is not a game with “many game breaking bugs”—well, at least not anymore than your average game—but is among the most critically acclaimed releases of the generation.

That said, I would agree with Curl’s point here that in-house exclusivity does motivate developers responsible for hard to output premium experience, since otherwise system sales may not move. Simply look at the GotY nominees from since 2013: Nintendo and Sony dominate nominations and overall awards. There aren’t many devs in the industry who can compare to Sony and Nintendo in terms of their in-house software output. (Additionally, recall how hard Sega’s quality assurance plummeted following their departure from the hardware business.)