So good that Other M outsold it on 1 platform, compaired to DmC being on 3 platforms. 

But sales don't equal quality. :P

I agree completely, but you gotta admit that's pretty sad. On the Wii, a space drama outsold a hack and slach on 3 platforms. 

Never said it wasn't. Just that it was an example of an ip being developed by a different studio than the one that created it :P

Minish Cap was developed by Capcom with some help from Nintendo and it was amazing!

It really depends on the studio. Ready at Dawn, for example, did an excellent job with two borrowed IPs, God of War and Jak and Daxter. Retro Studios has made Metroid and Donkey Kong games arguably as great as anything Nintendo or Rare accomplished with those properties. Artoon did a great job with Yoshi's Island.

You also have IPs that remain with a studio but decline in quality simply because the studio loses direction or talent, or both, e.g. Perfect Dark, Banjo-Kazooie.

So it really depends on the viability of the property and the talent of the studio. I don't think there's anything inherently positive or negative about franchises changing hands.

Well.. not all IPs are going to be bad when they switch hands to a different dev.  1st party IPs are what I'm more concerned about because those games are what sells your system.  Like the Halo franchise switching from Bungie to 343.  343 hasn't made a bad Halo by any means.. still none of their "Halos" has captured that same magic as the the Bungie's Halos.  Halo 1, 2, 3, and Reach (with the exception of the passdown to 343), those were all good.  Every Halo after by 343 was meh beside Bungie's.  Still sold a lot, but something felt missing.  Makes me wonder what the 'core' groups that follow these franchises think.

Edit* Like user above, it does depend on the talent of studios as well as the viability of an franchise... still worries me though because studio changes and radical directions could also hurt a franchise.. que Metroid other M.

So just don't give Ninja Theory your IP is something I think we can all take away from this.