That is basically the system that was in place before Nintendo merged everything into EPD. They had 5 different EAD software group, each dedicated to specific IPs.
I believe Nintendo has felt the need to pool all resources into one single development beast, as the average yield of all EAD individual teams was pretty poor at that time. It's a creative way to speed up output and increase efficiency, as teams are able to share expertise, standardize proprietary engine development and dispatch human resources in a cost-effective procedure.
I do think this was one of the smartest moves by Nintendo, as the ouput has never been as good as today, quality and quantity-wise.
That's actually how EPD is still set up. There's 11 individual production groups, some mainly work with outside companies, some work on their own games internally, and some do a mix of both. What changed was that Software Planning and Development was merged with Entertainment Analysis and Development, thus creating EPD. The structure I'm proposing, is the internal software R&D groups would be split off into their own autonomous studios.Last edited by TheMisterManGuy - on 19 September 2019