So with both the NGP and project cafe both seemingly pushing the easy to develop on and the ability to run PS360 level games. Do you think that this will lead to NGP/Cafe cross platform titles being how third parties justify developing AAA titles on those platforms once Sony and MS launch their next gen consoles or will it be like PSP/Wii games which never really took off?

I think you're making a very large assumption that Nintendo's next console will be closer in processing power to the NGP than Sony and Microsoft's next generation console. It is possible (and even likely) that this assumption will be false ...

Agree. My guess is NGP will be relative to PS3 similar to how PSP is relative to PS2, whereas Cafe should hopefully surpass PS3 pretty handily (though i suppose that was the case with the relations between Wii PS2 and PSP)

Hopefully however Cafe introduces something that would make porting to a portable an unappetizing option. Something unique and catchy like the Wiimote

Wow it was already annoying to have the ps3 and 360 be almost the same for so long and then to have the new Nintendo system do the same seems efen more annoying. Still even if this does I am predicting it will change again with the nextbox and PS4 as the two systems probably upgrade visually past the wii 2. We will just have to see. Personally this trend makes me think my days of owning multiple consoles are at an end.

 I dont really care much for graphics, but I guess café is going to be far superior than ps3/360, no because nintendo is trying to recapture the "hardcore" but because ps3/360 are old tech. My guess is they are going to release something that it will allow mutiplats for next gen as well, and a little bit more powerfull than the twins doesnt sound right at all.

  multiplats for cafe/ngp is a given, PES, FIFA, and some jrps maybe...

All rumours point towords Cafe being very close to the 360 so assuming that is true and the fact that I don't think MS and Sony are going to low ball their next machines and the fact this generation is looking to be a long one I am assuming that their next consoles will be many times more powerful, MS and Sony can't afford to go for a small jump as that would mean that the Cafe would get all the multiplats and it would be much harder to convince consumers that the new console is a significant upgrade, they can't use kinect of Move or some other control gimick like Nintendo did because they have set the president that they will be addons, they can't use online services because both have already added tones to their existing consoles, baring some form of mind reading device they will need power as a selling point they don't have another option. But there are other factors that rumours all state that the Cafe will have a "small" touch screen on the controller would mean that games designed for that size screen is another reason for a lot of cross plats with the NGP. 

PSP was closer to the PS2 than the NGP is to the PS3 from the specs released, the Cafe should have a better GPU and hopefully more ram than the PS360 but I doubt it will come close to the PS3 on the CPU side.

Edit: I expect Cafe to be a jumps over PS360 like the 3DS is a jump over the PSP.

They might make games cross platform if only to explore the controller possibilities.

At first, most Cafe games will be cross platform. I can see it being very easy to port some of the les violent, large scale third party games onto the Cafe. So I expect Cafe's first year lineup to have Assassin's Creed 3, a Need for Speed title, Call of Duty (Wince Wii had it), and whatever games that are relased as multiplatform titles in 2012.

This is what happened to the SNES when it first launched, and I feel the Cafe will follow a similar sotware strategy.

As for NGP, I don't think too many games will be cross platform. First of all, its graphcs are sub PS3 and 360. It plays games of a similar level of graphical display. Secondly, the memory allocation won't be large enough to handle most multiplatform games. Most multiplatform titles are about 9GB each, NGP can only handle 4GB games.

I think the memory allocation will limit cross platform gaming the most. However we might see some dumbed down NGP games eventually get ported to the PS3 and 360 (like GTA: Liberty City Stories for PSP did).

As many pointed out NGP will be incapable of running Cafe games. I epect Cafe to be like DreamCast was back in its day. I doubt the rumours that it will be using out dated hardware. Nintendo will set the bar as high as they can while turning a profit. I bet PS4/NexBox will be more powerful devices but I expect for 2012 the Cafe will be a state of the art machine.

As such I doubt NGP could handle anything that comes to Cafe with the exception of Cafe'Ware! If the Cafe was truly as weak as NGP then Nintendo is in for a very big fall in support. They would loose almost all of their hardcore fans (Except me) and they would have a very hard time attracting third parties and casuals. Luckily we know Nintendo won't launch an inferior system to PS3 thats a given.