This is not just a problem with games on S60, it's a problem with 3rd party applications on S60 in general.
I was a PalmOS (PDA) user from 1998 to 2005. Even in 1998, there were thousands and thousands of 3rd party applications available for PalmOS. But then the smartphones started taking over - they had much bigger market share. So, eventually, I jumped ship and bought a Nokia N93 when it first came out. I was sorely dissapointed when I realised the dismal state of 3rd party applications for S60. Despite S60 having a much larger market share than PalmOS ever dreamt of having, PalmOS had several times more applications available. Why is that? I have a theory.
I think the problem is that Nokia is a phone company first and foremost. Although they call their devices "multimedia platform" and whatnot, they still basically consider it to be a phone with some extra bells and whistles. Therefore, they don't market their phones enough as being able to install 3rd party applications. Back in 2005, I used to listen to a Nokia podcast called "Voice of S60", where the host used to interview Nokia employees. At the end of the interviews, he always used to ask them which applications they had installed on their own S60 phones. It turned out that most of them had only installed the Nokia podcasting application, and nothing else. If even Nokia's own employees in important positions don't install applications on their S60 phones, how can Nokia expect their consumers to do so?. That is why Nokia never realised the potential of 3rd party applications until Apple came along and showed them what was possible with the iPhone.
Then, there's also the problem that S60 allegedly sucks as a development platform. I haven't coded in C++ on S60 myself so I can't be sure, but I've read about many developers giving up on the platform because it's so cumbersome to develop for. I take it that's not the case for the iPhone.
Do you guys remember what we said before N-Gage (the latest generation) came out? People said it would suck compared to PSP and Nintendo DS, but we said, "ah, but the N-Gage platform has one advantage that the PSP and Nintendo DS doesn't - it's always connected to the Internet. There will be lots and lots of online multiplayer games for N-Gage". Unfortunately, these games never showed up. Reset generation is a brilliant exception though, showing how to take advantage of the N-Gage format. Unfortunately, it doesn't seem to get the number of sales it deserves.
I predict that Nokia will lose a lot of market share for high end devices to Apple, when us techies begin to realise how much more powerful the iPhone really is when it comes to software. Sure, the iPhone is way behind (no cut & paste, no video recording, no MMS, and so on) but for how long do you think that will be the case? The iPhone is maturing, and when it does, Nokia's high end devices are in trouble.
And no, I'm not an iPhone fanboi. I'm still using my beat-up old Nokia N93 from 2005, and I have a N97 on preorder. But I'm torn on that preorder - I really like the N97's keyboard, but damn it those iPhone applications are sexy!