According to VarietyAsiaOnline reported by Gamasutra big Japanese Developers have been significantly increasing Wii & DS development:

Namco Wii & DS development up 109% to 115 Titles for FY 2007

Sega Wii & DS development up 96% to 49 titles for FY 2007

Capcom up 5% to 20 titles

Square Enix has shown strong Nintendo support and it suggests here they will not develop any new titles for the ps3 until sales improve. This in my opinion is a big deal, and says alot about the importance of FFXIII, and the possibility of it getting ported.

No mention of Konami though they have been pro-sony

http://www.gamasutra.com/php-bin/news_index.php?story=14502

Eh ... but Square Enix is already developing for the PS3, so what in earth are they talking about??!! So does that mean they've stopped developing FFXIII? In that case.. drop it on the WII then :P Sorry couldn't stop myself of saying that.

Konami has developed Elebits and their next game releases in July, Dewy's Adventure. I have high expectations of that game, hopefully they won't let me down :P

It means they won't be starting any new project for the PS3, the ones that are already in development won't be cancelled or anything

If Square isn't pleased with PS3 sales come the end of fiscal year 2007 (March '08), you should expect FFXIII to multiplatform. The fact that they are making the Last Remanent simultaneously for PS3 /360 AND using the Unreal Engine 3 shows how important they consider Western gamers.

Well this is what we all thought would happen.

Although it's not clear whether these new games are ports or unique titles. In the case of the DS they will be more unique IMHO.

The financial year runs until the end of March 2008 and seeing as this is around 9 months away, I reckon developers are just not announcing any more games for the PS3 to see how sales of the unit get one first and foremost.

Anyway, with regards to SE...they have 2 or 3 games in development for the PS3 already and these games will take another 1-1.5 years to come out anyway. Although if sales don't pick up drastically for the PS3, then they may very well make a few of them multiplatform, although FFXIII is being developed solely for the PS3 at the moment and it may take 6-12 months at least to convert it to another platform.

If Dragon Quest: Swords and Final Fantasy Crystal Chronicles: The Crystal Bearers do well on Wii, it would make sense for Square-Enix to work the console into its broader FFXIII plans. There's plenty of room for spinoffs and offshoots in that universe as well, as we've seen with FFXII, even if the primary FFXIII design is technically beyond the Wii's capabilities. Square-Enix did great, absorbing stuff on the original NES, so I'm sure they can come up with plenty of ideas that will work well on the Wii.

SE has 4 PS3 projects going right now with 1/2 rumored, does any one expect any more ?

development up yahh, could they break it down a bit more. What type of games better yet would be a development funding breakdown per console.

I'm still a bit hesitant on were to draw the line on this one. Obviously this is great news for the Big N.

But when you have such strong actions by the likes of SEGA developing "X" amount of games for the Nintendo systems, yet letting one of their CEO's publicly doubt the strength of the Wii's endurance in this gens race, I have a feeling that many of the other companies feel the exact same way privately.

They all are attempting to strike while the irons hot. I think a huge factor, yet to be seen, for these companies is their end-of-the-day profits as a result of publishing heavier on Nintendo platforms. I don't think many of them will really be whole-heartedly convinced about the Wii's abilities and endurance until they see their profits soar, as well as the expanded market share Nintendo is able to get a hold of.

Personally, I think companies are being cautious on all accounts, but if Wii continues the break-neck speed it has been in sales, it won't be long before these publishers get addicted heavily on the profit saturation they can glean from the Wii's economical infrastructure.

Then and only then will these companies will be doing everything they can to keep the Wii alive, so long as they can flourish as a result.

I agree. And while SE does have only a handful of games in development for the PS3, it's also important to note that those are huge titles, both in brand name and in developmental costs. 

Overall, though, I think this Square news is actually the worst news of all. It's an exact and direct example of the spiral of death: systems sell poorly, developers hold off on games, systems sell even more poorly. It's a very bad sign, and much different than simply pulling back on development (as Capcom is, for example). 

I expect the PS3 to see some very good games during its lifetime, many of them from Sony itself -- just as the Gamecube saw many amazing games from Nintendo -- but I think we're seeing it lock into a pattern of consistently poor sales, with less games causing less sales causing less games. 

The first thing to go are the mediocre titles -- that flood of low budget, so-so games that round out a system's library in budget titles are already moving away from the system. The big names are still on board, although many have already gone multi platform (DMC4, GTA4).