Tbh after playing Ni No Kuni I'd rather only Game Freak deals with the game, Ni No Kuni becomes slow and a bit dull after a while. Pokemon is a tricky one because it was designed and built solely for handheld platforms from the beginning, the same concept or similar ones like Ni No Kuni show on console it doesn't have the same impact.

Why would Nintendo want to though? And why would Nintendo ruin its relationship with GF by handing over GF's baby to another studio?

I just realized that arguing this is a moot point because this whole thread begins with "What if?", therefore it's not meant to about whether it would happen. Therefore, I apologize for missing the point.

Now that I have my focus calibrated, I couldn't help but notice you said "real-time action setting" in the OP. I wonder how a roselia would look taking on an onyx.

If Pokemon was like Ni No Kuni the combat would be even worse. I thought Pokemon fans take pride in having a little depth to the combat, even if it's not at all useful in the brain dead easy single player?  So why do you want a garbage combat system from a game like Ni No Kuni.

Why did Nintendo want to make Pokemon Collesseum, XD, Mystery Dungeon Series, Ranger series, Stadium, Conquest, etc, etc? All of which were not developed by Gamefreak because they were spin-offs, as this game would be (according to the OP.) 

@OP I'd play it, although I wouldn't have my hopes as high as you do that it would be a great pokemon game. 

For experimental purpose, yeah. I personally would like to see a fantasy like world staring pokemon themselves, something similar to Pokemon Mystery dungeon

I meant why would Nintendo allow another studio to make another Pokemon game similar to the main ones, not a spinoff. After I went back and re-read the original post, I realized that the OP was talking about a spinoff game as well.

No thanks! Ni No Kuni was good but it wasn't great.

I rather have them doing other kind of games.

I'd settle on Fantasy Life coming to the West...