Every time staff is laid off from a AAA studio owned by SCE or Microsoft, Nintendo should just automatically hire them and begin to build them into a handful of new second or first-party studios.

Hear me out:

If they were to do this, and NCL managed the projects from a supervisory role as they did with Rare and continue to do with Retro and a dozen other studios, they would have a constant stream of new games for 3DS and Wii U, and there would be no more software droughts.  So, it's a two-fold advantage for them.

A) They become the publisher with the largest number of first and second-party studios, putting both SCE and Microsoft's studios to shame

B) It lessens the need for solid third-party support, which historically they've struggled with for around sixteen years now.  This new plan allows them to not suffer at the hands of third-parties who aren't interested in making games for their platforms.  All of these new studios would be able to make enough games to constantly release new titles throughout the year, and instead of 3DS or Wii U only getting 2 or 3 AAA games per year, it could turn into 5 for 6.  That would be a game-changer, and make them far more competitive against all the disruption coming from tablet and smartphone game studios.

Am I crazy or would this be an amazing idea?

Surely I cannot be the only one this has occurred to.

I've said for awhile that Nintendo needs a wholly owned studio or two to develop games slanted toward an older demographic. If they're shy about the association, they can just create a separate publishing group--it would be separate in name only, really, but it would still keep the illusion intact. I don't really understand why Nintendo avoids other styles of gaming so completely.

On the subject, I think Sony needs to hire ex-Nintendo developers (or developers from similar studios) to create IPs aimed at children.

Did anyone else look at the THQ auction list and think that Nintendo missed some good opportunities? Can you imagine Darksiders 3 as a Nintendo exclusive, for example?

I definitely think they should hire people, or maybe even set up a second Western Studio - but there is a reason as to why they are not. I can't really remember what the reasoning was right now, but it was something in line with that every person at Nintendo should work in the same kind of way, have the same kind of values and things like that. They're not opening the gates for everybody because they wouldn't have the time to educate everyone properly then

"AAA" development is just too risky (proof: the bankruptcies and closures). Making games that appeal to everyone with fewer people needed because it's not HD is what Nintendo does because it's a good business decision.

Why would Nintendo get into a crowded and shrinking market?

Better yet, Vigil co-developing the new Wii U Zelda along with Aonuma's team at EAD?   Similar to Sakurai's team working with Namco on SSB 4.   Imagine how much faster development would be if Vigil handled the grunt work, some basic side-quest content, and maybe the weapons/item upgrade system to make it a deeper gameplay component than what it was in Skyward Sword.  That way EAD could handle the overall vision of the game and make sure everything is to their liking and up to the quality standards. 

It could work, but you know SCE and MS had to have laid them off for a reason. Some of them might have just sucked (to put it simply) at their job. I don't think Nintendo should just hire on the whim... it could turn out bad. (Though, hiring some people that were laid off could be a great idea.)

Yeah, I would looove to see Darksiders in the hands of Nintendo (as long as they don't tone down the violence)!

And i don't think Sony COULD scoop up former Nintendo employees: they stay for a very loooong time there...

Well they've moved onto HD development now, as their home console is fully HD... I think the idea has merit, and as Iwata continually states every time there is a software drought: "We must develop attractive software and release them in a timely manner in order to sustain momentum", or variations of that quote.  He says it a lot because at least once a year there is a 3-6 month dry spell where neither one of Nintendo's systems gets any big AAA games and sales slow to a crawl. 

Nintendo itself says all the time that their biggest challenge is always not having enough AAA games.  This solves that problem. 

It would be a slow, gradual process, obviously.  But eventually it would increase their audience in the Western markets by releasing more games like Saints Row or Darksiders, instead of merely making expected sequels to their eight or nine IP every two or three years.  I think it's a win-win.

what the hell is an AAA studio