Monolith Soft, developer of the Xenoblade series, has established a new studio in Iidabashi, Tokyo. The branch opened its doors this month.

Monolith Soft has two other studios that it has used over the years. The company has a main branch in Tokyo, where its big projects tend to be produced. Its other in Kyoto has primarily assisted the development of Nintendo titles. 

Source 1 and Source 2

Good news, I like to see expansion of the developers I like.
I do hope that this is not just a B-game branch, but a studio which helps with the A-games.

Feels like a step in avoiding another situation like they just had when Nintendo took most of Monolith Soft's employees to help with BotW while leaving Monolith Soft with a skeleton crew to work on Xenoblade 2.

Yeah, I also get the feeling that this new team will be used to support other Nintendo teams similarly to the Kyoto one while the main team is now totally free so that they can improve their software output

Yess!! More jrpgs please ninty

How does this avoid “another situation like they had” with Breath of the Wild?  And what did Xenoblade Chronicles 2 need those extra staffers for? Do you know what roles in the dev process they even played?

While I see what you are saying, I could see this as a flexible studio that is designed to suplement developmental resources on various projects so Monolithsoft can balance multiple projects more easily without relying on third party outsourcing.

That sounds like good news to me.
I just want them working on rpgs like xenoblade.

It is somewhat crazy that Monolith Soft seemingly has gone went from a consolation prize of a rumored failed merger of Nintendo and Namco to one of Nintendo's most helpful and seemingly trusted developers.