How does it work in your opinion? Not meaning it in a sarcastic way
IMO:
Company A makes a new console called A+.
Game developer B says wow im going to buy the dev-kit and pays company A for the dev-kit.
company B releases game C but finds out that game C is downloaded more than sold.
Company B gives a respond about the anti-piracy and tells company A they need a new system with better anti-piracy programming etc. bla bla bla
But does it really matter for company A's stock price? No. simply because:
A: They get paid for selling the consoles and selling the dev-kits.
B: The costs from above are all calculated in the console's variable cost price. Better the variable cost price better the sales.
Just look at the Wii. All the big titles are from nintendo itself, if I dont mistake myself. You can hardly find any good 3rd party games on the Wii but did it make the Wii sell less, because it didnt have GTA 4 or MW2?
Its all about marketing and pricing IMO in the gaming world.