Nintendo doesn't have any massive system sellers except Wii Fit, and maybe Wii Sports. They are no different from Sony and Microsoft in this regard. Every other big selling Wii game is just recycled code from games that completely failed to sell the Gamecube.

Millions of girls (aka "casuals") aren't buying the Wii because of it's games. They are buying it for the controller.

I find it interesting that no one has actually responded to my post. Sad. You would rather argue first party schedules over contemplating a new idea of how to finance games.

I hate this forum.

Maybe no one responded because what you say is not really true. "Outsourcing" is nothing new in gaming, and it's not specific to Microsoft in any way. EA has been publishing titles from indie developers for about as long as I can remember. The same is largely true for Sony/Nintendo.

"Outsourcing" is one small point I made in several paragraphs of posting.

The real point was whether MS's strategy of saving money through publishing and financing titles is sound.

But thanks for completely half-assing my point.

I don't understand why would third parties drop 360 support?

spyro and crash ip's are owned by vivendi (ip's obtained when vivendi bought universal interactive studios).

ratchet and clank; and resistance ip's are owned by sony.  In most "second party" arrangements the publisher retains the rights to the ip.

I really have no idea how much financial mitigation this type of practice actually achieve, but thinking logically one cannot help but feel that it is cheaper and more cost effective to do this.

That being said, I hope this isn't the future of game developer, I really appreciate Sony's effort to built up a large and comprehensive studio portfolio, the coming together of all these developers and the sharing of technique and talent has done wonders both for the studios and for the games that they produce.

I understand that their is a need for innovation and there should always be places for fledging studio to grow and innovate but at the same time, I hope for a balance and company like Level 5, who started out as a tiny developer but are now moving into publishing and much more ambitious projects (Digital Distrution Medium) can continue to happen.

@ Luny Tune: Both Ratchet and Resistence are Sony IP, Insomniac had signed a contract all the way back in 2002 ensuring of the former to boot.   

Third parties aren't going anywhere. Third party games sell huge on 360.

I'm not sure if Microsoft saved any money by doing that but I think it's a really good idea in the short term. Having more 3rd party exclusives gives good reasons for people not to buy the PS3 (along with the price). Microsoft knows that if they want to ever succeed in the video game business, they must destroy any momentum that Sony can have. Microsoft doesn't care if Nintendo are first, they are no threat to them but they'll do everything they can against Sony.

The point was that the OP doubts 3rd party exclusives are going to stay on the 360, right? Or something like that? Not that multiplatform games are suddenly not getting released on the 360 anymore? Is it just me or have all people not understood it this way?