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It had been like this for awhile Sammy. In principal Nintendo were kinda of right to do so because they wanted to stop the oversaturation and poor quality that manifested with the gaming crash in North America but they kept these restrictions for over two generations to the point where publishers had to create dummy companies to get around them. Plus their licencing fee was beyond a joke too. Of course publishers couldn't go anywhere because Nintendo was the biggest show in town.
Then CD based consoles came along and everyone knew it was the way to go because they were more affordable and carried a lot of memory. It's just most of the systems were badly handled, 3DO was too expensive, Jaguar athe worst controller ever and no games and Saturn had the most botched launch in history that not only killed that system it probably crippled the Dreamcast too. Sony did it right because they went after 3rd parties and got their support by giving them more fair licencing fees, a more flexible system then their rivals and cheaper CD printing costs due SCE using Sony Music's expertise. It's through this that they got FFVII, Metal Gear and probably other key Japanese studios.
Sadly I still don't think Nintendo have truly learned their lesson with 3rd parties because they always want to be different at the expense of making developers make more difficult ports.
Despite this I want a Switch but Nintendo has to make to want it.