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It was a problem but there were only 2 competitors in the market at the time. So its not like it is now where publishers had a bunch of options. The N64 had much more issues than that. And all companies have games that are in development but get cancelled for whatever reason.actually, cartridges were a huge problem...
nintendo would have to start funding 3rd party development in order to get more third parties since they have kept their hardware so different from the pack. that will never happen because nintendo doesnt want to spend money on franchises that will end up on competing hardware. either nintendo has to start making consoles that reduce the burden on 3rd parties, or they have to rely more on 2nd party development.
nintendo makes pieces of software that they never release, unlike much of what western companies do. R&D is not about developing retail games, it is about experimentation and learning things that will hopefully end up in new games. of the 3, nintendo is far more focused on that.
There is a reason that games like Resident Evil Revelations and other 3rd party games bombed on the Wii U but Rayman Legends sold better on that platform than any other. The audience buys platformers. You have to look at what kind of games these companies are making. Yea Sony makes a lot of mediocre 1st party games, but Killzone, LBP, etc are made so they have an audience for 3rd parties. Meanwhile Nintendo has several teams working on platformers.
You could be right and that could work for them. But if youre wrong then they'd take more losses than they are now with the Wii U and the console ends up like the PS3 in its early years.... and Nintendo would pretty much be out of the hardware market. They arent a multimedia conglomerate like Sony and MS that have other divisions that can carry the weight of the losses the gaming division takes.Actually I feel that nintendo could pull a vast amount of market share with an equally powerful console. The market isnt there because nobody is gonna realistically buy a nintendo console for third party games with last gen quality.
Nintendo already has the biggest and most popular first party titles outta the three.
They also have more quantity of exclusives.

