Todd Mitchell on behalf of Kaufman Bros. Equity Research informed investors that the success of the Wii and DS is actually a bad thing.
In their view Nintendo has "not only increased the size of the market, but it has also re-segmented it in its own favor." He's goes on to claim that publishers will suffer as a result:
"Nintendo is dominating software sales on its popular hardware platforms, leaving the publishers with a smaller slice of an only somewhat incrementally larger pie."
"Moreover, we feel that the likely shorter product cycles of Nintendo's platforms puts the publishers in a permanent catch-up mode."
Mitchell goes on to point towards upcoming titles such as Metroid Prime 3: Corruption and Super Mario Galaxy as perfect highlights of this "phenomena."