Rumor: Nintendo blocking third party VC titles?

I really hope Nintendo isn’t so foolish as to pull a stunt like this. But you never know.
While some may have been quick to blame third party developers for their lack of titles on Nintendo Wii’s Virtual Console, it seems that’s the least of the problems. Forum chatter indicates that the lackluster content and slow releases might have a more sinister origin: Nintendo themselves. A user on NTSC-UK forum says there are bigger issues at hand:
I was working for a company last year who submitted a SNES game to the VC which got turned down.
Nintendo said it was because it was direct competition to one of their upcoming games which they were struggling to emulate for the VC. My prediction was Super Mario Kart and it looks like I was spot on.
The poster later was asked, and confirmed, that the title was Street Racer, by Ubisoft. Now, provided that the rumor is true, I can kind of, sort of, maybe see why Nintendo would feel threatened by having a competing game put on VC while they struggle to transfer over their own. But wouldn’t it be in the best interest of the Virtual Console service in general to have as many old favorites as possible? I guess Nintendo doesn’t see it that way. Perhaps with some negative fan pressure, Nintendo will stop…well, being so insecure.

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