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My question again is: is it wise for Nintendo to release their console-selling first-party titles so close together instead of spreading them out over a 6-month or year-long window?
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In the West? Maybe not. In Japan, though, I don't think they care. They're biggest sellers are Mario, Pokemon, and their increasing line of brain training games .
Also, I've always believed a big reason for even making first-party titles is to advertise to third-party developers. Now that every major Japanese (and Western) developer has signed up to make games on the Wii, they no longer need to try so hard. It's okay if Nintendo doesn't release another Zelda/Metroid/Whatever for a year or two, because Square-Enix, Sega, Bandai, etc. will be releasing plenty of games during that time.
Anyway, back to the 360. Assuming they're was a price drop, is it possible that MS would scale back the premium SKU? Lower hard drive size, or just producing a much smaller batch of units overall? Could it be like the Wii situation is now? Or would they pull a Sony, and use the price drop to phase in the Elite as their primary model?
Jam it back in, in the dark.