Nintendo's relations with 3rd party developers and publishers has always been hit and miss. While the company has fostered and even repaired relations with certain companies, it's acted completely indifferent towards arguably more important ones. A common criticism is that Nintendo's hardware is just too different to port to, whether that be not having the same storage format, having a unique controller, or not having a good architecture, many 3rd party companies typically avoid Nintendo for major releases.
Conformity and standardization have become the name of the game for 3rd party development in recent years, but Nintendo continues to play a different game. The Nintendo Switch at first, appears to be business as usual. An unconventional and underpowered system with an equally weird controller sounds like kryptonite to risk-averse 3rd party publishers, who often want big fat profit, as fast as possible. Now the common answer to Nintendo's 3rd party woes is to just make a "normal" console. Ya know, super powerful, traditional controller, and robust online. That'll get 3rd parties, plus Nintendo games. That sound like a good fantasy, but reality check. I don't think just having a watered down PC will be enough for Nintendo to get 3rd party support.
The problem with Nintendo's third party relations lies within the roots of the company's overall philosophy. Nintendo typically designs their hardware for their software. Its game developers and producers are typically very hands-on with the development of their platforms. Nintendo then pitches the final product to third parties, and it's up to them whether they want to support it or not. This is a very different approach to Sony and Microsoft, who go to all the major companies as early in the development process as possible, and design the whole thing based on the wishes of said companies. Nintendo makes consoles they think will be fun, Sony and Microsoft make consoles to order. Both methods have their pros and cons, but for Nintendo to get the likes of EA and Rockstar on board, they'd need to put aside their own interests and ideas and basically let the 3rd parties call the shots. Granted, Nintendo has apparently been taking their feedback more seriously during the Switch's development, but it's clear the Switch is still designed for Nintendo games first, 3rd parties second.
Another problem has to do with branding and marketing. Whether you feel it's deserved or not, Nintendo still has a bit of a kiddie stigma attached to it. 3rd parties typically target the 18-35 year old male gamer demographic, which is the safest and most reliable audience in consumer goods. Sony and Microsoft cater almost exclusively to this audience, and they make sure nearly every major release panders to this audience in some way shape or form, thus making their platforms more attractive to companies looking to pursue this audience. Nintendo as usual, takes the path less traveled. They aim to make gaming inclusive to everyone, including those who never really played games before. They typically have never curated an audience for games like GTA or The Witcher III, and thus, those companies don't see much benefit in releasing their games on Nintendo platforms. How do you try and pimp a massive franchise like Grand Theft Auto on the Nintendo DS platform, for example, when the platform holder pours tons of marketing $$$ and R&D into stuff like Style Savvy or Mario Kart? Like or not, Nintendo just isn't very good at targeting the AAA 3rd party audience, and probably, never will be.
Do I think Nintendo can do a better job courting 3rd parties? Of course, Everyone wants Nintendo to have as many developers on board as possible. But we have to face facts, Nintendo is never going to be the main choice for gamers simply due to how different their philosophies and goals are as a company. Philosophies, that are largely incompatible with what most major 3rd party look for. Gaming has changed, and gamers today are very different from how they were in the 80s and 90s. The only way Nintendo could be #1 is if they toss out their entire ideological and creative ethos, and homogenize themselves to meet what is considered hot, or the norm, which at that point they may as well not even be Nintendo. The best Nintendo can do, is be the best companion piece to an Xbox, PlayStation, or PC they can.
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