Nintendo president Satoru Iwata thinks that the recent trend of game publisher downsizing could help them out, and his points kind of make sense. He says that publishers are backing the more popular consoles, and not necessarily the most powerful ones.

"A number of major software manufacturers are reporting that they are experiencing a financially challenging time or that they will be scaling down their operations," commented Iwata in a recent press conference.

"To the third party software manufacturers, the surprise must be bigger," he continued. "Some are reportedly saying that they bet on the wrong horse or that they need to change course. I recognize that each one of the third parties is trying to develop software that can be appealing on DS and Wii systems which have significantly increased the installed bases, while narrowing the overall number of software to develop." 

I know if I had a games company, I'd either shoot for low-cost development for any of the console download services, or I'd make bigger better titles for the Wii or DS. In this economy, you'd have to believe that companies aren't out to take any chances right now.

[via GI]