The Japanese development side is adequate, especially if the NX is a shared library platform. Most of Nintendo's resources are tied up making two versions of every hit franchise they have. Sony/MS don't have to do that.
IE: Instead of having to make Mario 3D Land for 2 years, and then Mario 3D World for 2 years, a studio like that likely in the future will just be able to make one game, and then move on to an entirely different project like say a Wave Race game (just as an example).
What they could use, and hopefully the new leadership understands this is a decent sized US or European studio.
200-250 people that can work on two games simultaneously in Seattle, UK, LA, Vancouver, etc. where ever they decide.
If the NX actually is a shared platform in that way, then honestly I don't think game droughts will be as much of an issue, but Nintendo's game diversity/library appeal is still lacking.
Rare brought Nintendo some nice diversity in the 90s, and it would be nice to have a studio capable of working on different IP like that from the West again.
