if they can't handle skirt physical how in the hell could nintendo ever nail down the intricacies of boob physics?!?

Hire Team Ninja.

It has happened before...

which brings us back to the OP...why is it nintendo can't develop it on their own?  

It's not a matter of can't.

It's a matter of Nintendo not giving a crap.

Because other developers would do it better and without wasting resources.

Survival games, shooters, hack and slash-style beat-em-ups?

Those are genres where the design philosophies differ so widely from Nintendo's that they have no real frame of reference for making them on their own. That's not to say that Nintendo can't produce that sort of game - Eternal Darkness is proof positive that they can guide a rough-about-the-edges developer into making a gem of a horror game. But that's not Nintendo.

Nintendo has a very limited amount of resources that they have to devote to supporting two platforms, and for the past two generations they've had to do it more or less by themselves.

They are better served by sticking to the things they can make perfectly.

We are better served when other developers either fill in the gaps or are guided into doing so.

completely agree, i've been saying nintendo is a lazy developer for years now.  that's exactly why i stopped playing their games.

That's one way of putting it.

I say that they simply have their priorities in order.

I love Mario as much as the next guy, but Nintendo's world isn't going to fall apart if they maybe scaled back some of the resources they continually put into making Mario games/spin-offs for a year or two.

Expanding the audience should be a key, and with the blue ocean/fitness game/Wii Sports/music/dance trend having been mined to death the last 6 years, Nintendo needs to bring in fans that aren't just fans of the same 5-8 core Nintendo franchises.

Otherwise you're going to be stuck in GameCube-ville.

Even if Nintendo/Retro can't make a game as good as Halo 4 because it's not their forte ... I'd sure as heck bet money they could've made a game much better than Zombi U or Ninja Gaiden 3 for the Wii U launch if they really made it a priority.

IMO it should be a big priority at Nintendo to make a new character IP that appeals to teenagers and adults moreso, which they can expand their audience with, use as leverage to point at non-believing third parties. You think Rockstar/Take 2 would even dare not making a Wii U version of Grand Theft Auto if Nintendo had gotten to a franchise like Halo first?

No way would be they be able to treat the Wii U like the "Carnival Games" machine if that was the case because there'd be a clear as day established audience for that, much in the same way that developers making Mickey Mouse, Rayman, Lego, or Sonic games love Nintendo platforms, because Mario is a flag-bearer that builds an audience for them to mooch of off.

Nope, don't care.

They'd be better off grabbing a third party dev like Silicon Knights and exerting some executive control in order to get a good game, like Eternal Darkness, made.

Like what Other M should have been; that game should have been amazing but they put the wrong director on it.

Nintendo doesn't have the skillset or the design portfolio to put together a game to stack up against the big boys in those genres. It's not going to happen. That's the end of it.

I don't really buy it. They can make great Zelda and Metroid Prime games, they can't go a few notches darker than that? That's all they need to get to. No one's asking for a game filled with boobs and fountains of blood, lol, even Uncharted or GoldenEye levels of grit/violence would be fine.

Also a lot of Nintendo's staff nowadays are old developers from Squaresoft, Namco, Konami, Sega, Capcom, etc. And more are coming because of Nintendo's expanding into a new R&D center next year (a lot more). Retro also has been up-sized it seems and NST is beefing up. The co-creator of Sonic and producer of the first two Uncharted games is at NST now for example. 

I think the real issue is Nintendo is afraid to compromise their family friendly image. Maybe with Mr. Miyamoto stepping back next year, other designers might be encouraged to try edgier types of character designs/content.

They're also overly reluctant to take a chance on a new IP. I think they need to take a longer term approach for once and try building a new franchise.