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I think its mainly expand internally, but buy some studios if the opportunity is there and the studio in question is important for Nintendo. For example a studio like Grezzo that is capable of delivering solid sales working on Nintendo IP games would be a solid acquisition if the opportunity was there.

But i think Nintendo will mostly focus on expanding the size of Nintendo EPD and their subsidiaries (Retro Studios, Monolith Soft, Next Level games and more) as well as partner studios (HAL, Intelligent Systems, Game Freak and more).

I don't think Nintendo will ever try to buy a major publisher. The biggest type of acquisition i can see Nintendo going for is something the size of Platinum games.