I wasn't responding to anybody's responses specifically, just answering the question directly from MHO.
"Yeah but I'm pretty sure the main reason PSX games were still made at a semi-regular rate after the PS2 launch was because of the backwards compatibility. Otherwise the amount of PSX games released probably would have dropped significantly. It's kind of a "chicken or the egg" situation. Is backwards compatibility a result of previous generation games still selling or are previous generation games still selling because of backwards compatibility?"
Correct. My point in fewer words was that with a transition phase from one console to the other, there is normally a sales slump as people wait for the new gear, which usually begins as early as 2-3 quarters ahead of launch and doesn't correct itself for at least as many quarters after launch, which can mean a year of revenues being shaken up (hence their hate for talking about future products). Before it just had to be tolerated due to the cartridges. But now with discs, one factor could be if the continued sales they'd get from GameCube games for that year are worth the R&D and manufacturing of backward compatibility. It's a market and money question that we can't really quantify ourselves, but it's at least one factor of many to consider. It would certainly just be a perk if GameCube games kept being released more than a year later.
I think Sony's main reasons for doing it was the volume of sales they could have to lessen the pain of the slump, and to a lesser extent the fact that the PS2 business was not going to make money for a good deal of time... so stretching out PSOne made a lot of sense. Since Nintendo's working on a smaller userbase scale, it's unknown if it would be worthwhile from the same standpoint. But as I said, it's at least one factor of many to consider.
Or they could go with a new set of suppliers and all bets could be off.
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