While Nintendo's hot selling Wii game console has been making headlines and new video game fans, shortages of the console mean third-party developers are getting a smaller piece of the gaming revenue pie, says one analyst.

Nintendo recently increased its production of the hard-to-find system to over 1.8 million units per month but hasn't been able to meet demand as holiday shoppers rush from store to store.

The success of the Wii has only benefited Nintendo, Todd Mitchell, analyst with Kaufman Bros. wrote in a note to clients.

Third-party developers have seen isolated successes on the platform, but Nintendo has dominated software sales, and will continue to do so through the holidays.

Nintendo has reported that it sold 350,000 Wii systems during the first week of the holiday shopping season from November 18-23. It's closest rival, the XBox 360 from Microsoft sold 310,000.

Software Nintendo