Obviously, but you're talking about individual teams getting larger, rather than the number of teams increasing. Which is what actually needs to happen to start producing games more quickly.

What you're described is unchecked hiring of redundant staff. Which is not what anyone is suggesting should be done.

Release timing matters too.

In September last year, Rayman Legends, Wind Waker HD, and the Wonderful 101 all were released in the same 2 week-ish time frame. This followed a way too long drought.

One sold really well, one could have done better, one flopped. All were great games, but could have sold better if release timing were thought out more carefully.

If Nintendo were willing to money-hat more projects of other studios, they'd be in a better position.

Well everyone answers to Miyamoto. Then for Kyoto EAD, they have Tezuka as executive managerand Eguichi as general manager. EAD Tokyo has Eguichi as a general manager as well. If I recall correctly, Sakamoto became the general manager of SPD. Then each group, they answer to their respective Group Manager. Retro Studios answer to Micheal Kelbaugh (President and CEO of them) and along with most of the Western partners, to Kensuke Tanabe (group manager of SPD 3). Meanwhile Monolift Soft answers to Tetsuya Takahashi and along with most Japanese partners, Hitoshi Yamagami (Group manager of SPD2)

And that's why third parties fits on a console. They should do something to get on board as soon as possible.

Bottom line is that they need to get more games out on their systems. Whether this comes from their own first party studios or third parties, it needs to get done.

Op is wrong. If they expanded they would have have teams to bigger games would be nintendo themselves. They could have
50 teams each working on a 5 million budget. Or they could have 25 teams 9 million budget that would all depend on nintendo.

With 3DS and Wii U, it was easy to see how shorthanded Nintendo is in developing for both systems from scratch.
With older portables it was easier to get by, thanks to their weaker hardware or giving them a lot of ports from older consoles.
Things probably wouldn`t be this bad if it wasn`t for Wii U`s HD treatment. But as we can see, it has taken it`s toll, on Nintendo, getting late to the party.

Nintendo can no longer keep their platforms apart in regards to HW.
And that`s what Iwata has already said.

My guess is that the expression Iwata used to show that they will be brothers will mean that they will eventually start releasing the same game on both consoles.
Why? It saves them money and manpower that they can use on other smaller or bigger projects and even try gendre they normally don`t venture into or really have a lot of presence in.
Not to mention that it saves their franchises from overexposure.

Imagine that in 2/3 good years, Nintendo can release 6/7 games per platform. Now imagine if they all came to both platforms. It would mean 12/14 games per year. At least 1 every month.
Even in the bad years, they would most likely have something like 8 games per year.

They could really become self sufficient if need be. And looking at how little 3rd parties support them, it will eventually happen.

Most 3rd parties won't give Nintendo a non gimped game unless they pay them high money for it. I can't imagine seeing Nintendo paying others for a decent port of a game, they would much rather use that money for their own budget of games.

And to add to that, you already mentioned the talent being an issue, which I agree with.  Simply throwing the IPs to other devs or outsourcing for help may not result in the kind of quality we all know and expect from Nintendo.

There's no denying that quality takes time, and it's really quite a complex issue that's not nearly as simple as "just release more games, Nintendo!", lol

Well from any studio what they did with the 3DS and Wii U in 2013 (Wii U starting from August) was a really good release schedule.

It's just that since they have a small amount of 3rd Party support it makes the waits seem longer.