Honestly I think Nintendo had their priorities wrong they should have kept all the staff on MarioKart 7 and left Nintendogs for a later release. MarioKart would have been a far more impactful launch title and it could have shifted millions of 3DS units at a time when early adopters really had no software to buy.
As for this delaying Retro's game, well it might have slowed it down a bit but I am guessing Retro's title is coming for WiiU and Nintendo will want it within the launch window hopefully. Considering it was apparently in development alongside DKC:R it would mean Nintendo is following their Japanese strategy. Keep the studio working on multiple projects at a time to ensure a smooth transition from project to project and a consistent stream of releases.
My bet is Retro is still on track. On the other hand Nintendo seems to be aware they need a strong first party presence I wonder if this will lead to some more acquisitions or new studios in North America or anywhere for that matter. Or maybe Retro will hire another 50-100 staff to increase its development capacity! Either way I am guessing they have all of next winters games lined up and ready to go if not already 2013's in development early stages likely.
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
