The runaway success of the Nintendo Wii cannot continue, as third-party developers have yet to show they can make money on the consoles, according to Xbox-maker Microsoft.

"Clearly, we have a competitor where they win and no one else wins," Bell told Reuters in reference to the overwhelming popularity of first-party games on Nintendo platforms. "That is not sustainable, it's never been sustainable," he said.

Third-party publishers have struggled in past years to compete with Nintendo-made games given their critically acclaimed quality and loyal following.

However, Nintendo says times have changed. Earlier this week, Nintendo president Reggie Fils-Aime told Reuters that 60 percent of Wii game sales came from outside publishers in November.

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