Squaresoft (the Square part of SE) failed to make good and original games after PSX era. I love KH, but this is the only game I can think that is good and original. They screwed up Musashi, Chrono Trigger, Parasite Eve, Saga, Mana, Front Mission and even FF7. Lets not forget about original crap they have developed like The Bouncer, Drakengard, Full Metal Alchemist, FFCC, Radiata Stories (average), Project Sylpheed.
Nintendo make awesome games, but they are lacking into the new IP area also. Even so when they make a new IP, it does not suck (Nintendogs, Brain Age, Pikmin). Nintendo gets my vote. If it was Capcom vs Nintendo I might have to think a little.
"You are for ever angry, all you care about is intelligence, but I repeat again that I would give away all this superstellar life, all the ranks and honours, simply to be transformed into the soul of a merchant's wife weighing eighteen stone and set candles at God's shrine."