Of course they do. They should have 2+ more studios in the US or Canada and 2+ more in Europe. They need games in the cinematic adventure, shooter, realistic racer and other genres. It would really compliment the Mario, Zelda, Monolith, etc teams they have right now. If you were to add an exclusive contract with Mistwalker, they would essentially not need 3rd party support to have a truly thriving system.
The Big Red Button suggestion is great. If I ran Nintendo, I would also pursue partial ownership or partnerships with Edge of Reality (former Turok designers, good at shooters), Turtle Rock Studios, Slightly Mad Studios and possibly try to purchase Crytek UK from Crytek (former Rare devs). I would give them all freedom to create new IPs, preferably to western tastes with strong graphics and online. The whole acquisition could potentially be done for about 500 million and would make Nintendo by far the largest and most versatile publisher in the world. If Mistwalker and Platinum games were contracted exclusively to make action titles and rpgs, respectively, the software flow would be incredible.
