The Nihon Keizai Shinbun (Nikkei) is reporting both in its online and print versions that various Japanese development houses are reallocating their resources from Sony platforms to competing Nintendo consoles.

Due to good sales and a strong installed base, Nintendo’s consoles are getting more attractive to developers. The news report specifically mentions the major software houses Sega and Bandai-Namco, who are both producing twice as much software titles compared to last year. Together with Capcom all three publishers are forecast to divert their resources to Nintendo’s products.

Meanwhile, games geared towards the PlayStation 3 continue to suffer from higher development costs relative to Nintendo's entry. However, Nikkei expects that development efforts on Sony's current console will focus more on high profile titles that could be potential big sellers - the analyst firm Screen Digest observed a similar pattern among Western developers in a report released last week.

The print edition also confirmed that Square-Enix plans no release of PlayStation 3 games for the current year.