That's a Japanese studio.
The last time a Western studio got to make a major original IP title was ... when?
Nintendo is a very traditionalist Japanese company even by Japanese company standards. Given the cost of modern game development I think they are reticent to give a Western studio a chance at a new IP.
Retro failing every time they've been given a chance at a new IP probably just reinforces the position at Nintendo.
Snipperclips 2 years ago at the launch of the Switch. I'm not asking for a massive-budget AAA epic. But Nintendo can do more to work with Western AA developers to produce Western-made AA first party games on the Switch. Next Level is a good candidate for one of these.