According to Develop magazine, various studios are in anguish over Microsoft’s decision to offer lower royalty rates to developers working on titles for its Xbox Live Arcade service. Reportedly, Nintendo is taking advantage of the situation by offering increased royalties in an attempt to convert these studios over to its WiiWare service.

“Frankly, we’re not looking at making games for Xbox Live Arcade because the service is full of shit,” said one anonymous developer, who is highly displeased with the number of retro remakes on the service.

Another WiiWare supporter added, “Nintendo has made it very clear to us that we’ll not only be making a better royalty rate from WiiWare games, but we’ll also have a better chance of selling games – the service won’t be clogged up with the retro titles that have blighted the chances of many independent studios on Xbox Live Arcade.”

Nintendo’s ’secret war’ on Xbox Live Arcade and PlayStation Store [Develop]

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