FoneBone said:
I agree with your other points, but I'm not seeing how this is Nintendo's fault. Since when have "large Western publishers" ever taken handheld development seriously?
Here's a consideration: perhaps focusing so heavily on handhelds is, in itself, publisher unfriendly.
It's pretty clear what Publishers want -- a generic console box that they can dump all their games on without effort. It's why the PS3 rarely gets games that actually take advantage of its strengths over the 360: most publishers have little interest in exploiting the specific, unique advantages of any specific platform. They want a lowest common denominator. The ideal third party platform needs to have generic power (i.e. about 360 levels, today), have a generic controller, and have generic networking features. Any idiosyncrasies mean that porting requires more effort and more money -- or even worse, may require the game to be built exclusively for that system from the ground up.
This is one of the reasons why support for the PSP was so strong to start with: not only was Sony's name already well respected by third party publishers, but
also it could be treated like a generic console box that just so happened to be a handheld. They like that.
By the very act of producing handhelds,
and also trying to make those handhelds distinct and particularly handheld-y, Nintendo is being unfriendly to EA/Take2/Ubisoft/Activision. I honestly see no solution to this problem, because this process (making unique handheld platforms) is also Nintendo's core strength, so they certainly aren't abandoning it anytime soon.
In some ways, I genuinely believe that Nintendo and third party's differences are unresolvable forever. Nintendo wants to make unique, distinct hardware that differentiates itself; third parties want generic, grey boxes that have as few distinguishing features as possible.