Well actually it was joint development and they split up publishing.  Although it was developed in house at Sega, Nintendo had oversight. 

Not exactly, Nintendo only co-owns the IP (only a third if we could Mario, Sonic and the Olympics evenly) and the publishing arrangement was worked out beforehand.  Demon's Souls is a 100% Sony property and FROM was simply a contracted developer and Atlus only a 3rd party publisher who licensed the game after the fact.

It's more like if Nintendo let Atlus or someone else publish Metroid Prime in America.

Which is exactly like Demon's Souls. From Software were the developers but a few guys from SCEJ helped with the development.

Publishing wasn't split up though. That is different because for whatever reason, Sony did not want to bring the game to the West.

Demon's Souls producer was from SCE Japan Studio.  Mario & Sonic's producer was from Sega Sports Design R&D.

Actually, looking through M&S credits, no Nintendo staff worked on the game directly outside mostly voice and art supervision credits.  Nintendo's involvement pretty much looks like making sure Sega kept their IPs consistent with company policy. Nintendo's involvement tends to get overblown in their contracted or licensed games though.

I think there was one posted from Noname.  I think I posted in it.  I'll see if I can find it.

8422k games sold on Wii:

WSR 1347k

WF+ 882k

WF 565k

Mario Kart 371k

Animal Crossing 304k

Wii Sports 255k

Mario Tenis 225k

Pikmin 145k

Wii play 142k

Pikmin 2 135k

Mario Party 101k

SSBB 94k

Wii Music 92k

That's 4628k Nintendo published games out of 8422k total

but wait those were only top 20 Wii title in Japan i counted, now going down to top 50 Wii titles this year we need to add some other games like Galaxy, Donkey Kong etc. which total up to 362k.

So we have close to 5M nintendo publish games sold on the 8422k total  which means if a game sells in Japan there's close to 60% chance it's published by Nintendo.

If you got for PS3 that's:

5497k software total

and 740k Sony published  software sold in top 50 PS3 titles so the publisher here takes less than 20%

Third party PS3 software sold > Third party Wii software sold

Marvelous gives us great games but they must take lessons in marketing if they want their games to sell.

Atleast Muramasa is doing well in NA. Hopefully it'll do decent numbers in EU as well.

I'm actually surprised LKS made a profit. I would of thought none of them did.

Wii games are cheaper to make but they aren't miracle workers.

Yet VC2 is coming out on PSP.

What does that tell you about Sega's happiness about VC1's sales?