even if their old quirky games didnt sell amazing or drive engagement they each draw in someone who might not have otherwise got drawn in.
for example animal crossing drew in people who dont play video games, and then animal crossing fans bought pikmin 3.
setting the stage for pikmin 4, the way these games interact and how their audience align is important.
all of nintendos ip's cover different bases entirely,
sonys ips are all different ips but pretty much all the same genre, the audience is a circle, they aren't attracting anyone who doenst care for action adventure games,
of course sony used to rely on 3rd party exclusives. but the only one dumb enough to stick with that was FF.
which puts sony in a tight spot ip wise, if you aren't attracted to their ip there is no reason to get a PlayStation, unless you just dont want to get a PC.
the ip that would provide variety are not there anymore, they got killed by sony never expecting the day that they would have to rely on their own ip like nintendo.
in essence sony was 1 part of a larger whole, and when the rest of that whole left so too did the audience it attracts, meanwhile nintendo basically covers the whole medium in terms of genres, one interting thin is the didnt used to, they were the same as sony during the snes days, they had their genres and they stuck to it. that kept around for the n64 because they expected everyone to stick with them but they all left bassicaly making the n64 very platformer weighted.
its around that time as well that nintendo really branched out in terms of genres on the animal crossing, horror games, rts's, getting monolithsoft, golden sun to fill in the role of traditional rpg, rythm heaven and so on.
the n64-gamecube era was what transfomred them from a regualar game company to a microcosm of the industry pretty much. no matter if 3rd party were their or not you could still expereince puzzles, platformers, fighting games, life sims, rythm games, party games, rpgs, even visual novels, horror games, shooter games, racing games and so on.
sony is bassically in thier own n64 period rn, not becuase they arent getting games from 3rd parties they still are, but the current market it makes exclsuives a bad idea, so any console has them and thus they are a less enticing reason to go for playsation. the difference is playsation has tons of ips they just never bothered to grow them and killed them off.
just like the n64, if you like platformers you will have a hell of a time, if you like cinematic adventure with lite arpg mechanics you'll love playstation.
it isnt as extreme obviously but i hope you get the point im making.
these little games matter even if they dont sell like crazy they provide an option and the option exisiting is so important.
all the 3rd parties went for the multiplat money.