I'm pretty sure I remember reading about this a while back but can't remember where or what the reasons were. Can anyone help..?

It certainly seems to be correct when you look at the sales figures for the most successful PS2 titles last gen as well as the sales figures for Wii titles so far this gen.

It's a disadvantage for attach rate (which is why this stat is next to useless), and perhaps a disadvantage because you have to stand out amongst more competing software titles. Other than that, more hardware sales means more software sales.

And if you're only looking at the most successful titles:

PS2: 13 5 million sellers, 5 10 million sellers

Wii:12 5 million sellers, 7 10 million sellers

360: 7 5 million sellers, 1 10 million seller

PS3: 3 5 million sellers, 0 10 million sellers

nope, install base can only have a positive effect. More buyers. However, a larger software support can have a negative effect on software, just because there is more competition.

I'm pretty sure the article mentioned adoption rate instead of attach rate. I think it may be due to the console with the larger installed base having more software available on the shelves. Makes sense I guess. Both the PS2 and the Wii have a shedload of shovelware available.

No.

PS2 confirmed this with over 1 Billion units of software.

Aye I agree with the people whoa re suggesting this is a mis-interpretation of the data.  

You can't sell the same games to people in a consoles fourth/fifth/sixth years that you did in the first three years or so.  The software has to stay fresh in order to sell.

The unserbase argument is just a lie to make the Wii or DS look bad (note this is almost never mentioned when a game sells less on the other systems) as well as to hide that a publisher didn't market a game, and/or the developer didn't make a game with wide appeal

I think you're thinking of how attach rate is artificially high early if you have some big selling titles, such as Halo3 on 360 or Halo on Xbox, while over time the attach rate goes down.

However, a large install base should result in more SW sales overall provided a broad enough range of genres is offered, unless the console has a more narrowly defined demographic install base.

/thread nullified

Attach rates should only concern the hardware manufacturer, and that's only when they need to sell a certain number of games per consoles to make up for selling the system at a loss (which Nintendo doesn't practice).