I don’t think Retro is a good example to use for this argument. We haven’t seen a new game from them since Tropical Freeze, 11 years ago. We also know they were working on a game that was abandoned or cancelled. Metroid Prime 4 will be a great opportunity for them to show their continued excellence, and after that I think they should immediately get to work on Metroid Prime 5. Now isn’t the time for dallying with untested IPs for this company. 

What's the problem here, exactly?

Every time they tried to make new IP it just didn't work. They cancelled everything but Metroid Prime at the beginning of the studio's life. 

They wanted to make the Metroid Prime games. When they didn't, they wanted to make Donkey Kong games. Recently, Metroid Prime 4 was pitched to Nintendo by them. They're not being forced to work on Nintendo IPs by anyone. They want to. Why is this a problem?

FWIW Retro was working on a cancelled RPG independent of any previously established IP prior to being assigned MP4:B in January 2019. Nintendo does allow their studios to function with a strong degree of independence, though only if the project they propose appears promising in the eyes of higher-ups.

I think most major Monster Hunter games were always available in the west. And the Monster Hunter franchise started on PS2 and went to PSP and then finally 3DS. It was never directly under Nintendo. Or do you know something I don't? I'm not a giant MH fan. 

Its a competitive industry, Sony is going all out against Nintendo now that Xbox is out of the picture, so Nintendo using their considerable warchest to secure development resources to make even more quality, exclusive games is a good way to build themselves up for the future competition.

They will really benefit from the fact that the Switch era gave them such a big warchest, they can basically buy up a lot of studios and also moneyhat third party exclusives with minimal effort the coming years. I think stuff like Duskbloods is just the start of what they will be trying to do, they will target getting exclusive games in genres and from studios Sony's fanbase have an affinity with, its clear that Duskbloods alone will make many of Sony's FromSoft diehards double dip and buying a Switch 2 as well, which was all part of Nintendo's plans.

At least Nintendo and Sony competition will be much more fun to follow than Xbox/PS competition was to follow during the last 10 years.

Nah, Xbox's slow decline was a rollercoaster and watching people advertly defend them for years was fascinating in hindsight. Also we already had an example of Nintendo completely dominating Sony. It was called Vita vs 3DS and Sony sadly caved. I don't think Sony could compete with Nintendo if Nintendo went on a giant acquisition spree ala MS, or if Nintendo made a Switch 2 Pro that was on par with a PS5 and had an actual disk drive. Hell, I'm not even sure Sony can compete with Nintendo right now. Switch 1 sold 150 million units. Switch 2 is already at 10 million. Nintendo 1st party games sell just as well as Sony 1st party games or even better. And those Nintendo 1st party games don't cost quite as much to make as Sony 1st party games either. Thankfully MS level acquisitions are not what these Nintendo aquistions are about. They want to buy small partners like Grezzo and Gamefreak, not giant corporations like Bethesda and Actiblizz. 

What kind of broken argument is this? Monster Hunter was on Sony platforms first with the first game being on PS2, the series gain a sub-culture on PSP but was mainly Japan focused from Capcom I've followed the series since the first game. Tri came along and gave the franchise a dedicated following in the west far more so than what it had on Sony's platforms prior to 3DS you're just flat out lying here for reference Tri was the best selling console MH until World that basically throws your argument out, the success on 3DS is what drove Capcom to finally put in equal effort in the west as they did in Japan before then they didn't really bother hence why a lot of the 3DS games were published by Nintendo in the west.

Xenoblade is far from a B class RPG its considered the best open world RPGs from Japan by far Monolith pulled off open world rpgs while SE was fumbling about for a decade with FFXV in development this is pure damage control on your part, the story of Xenoblade's NA release even shuts down the whole B class argument.

Even ignoring the Xenoblade games, Monolith is a huge support studio for Nintendo. They are in a much better position nowadays and have grown significantly since the acquisition, yes.

Yeah that's even more telling as it's an objective sign of growth, they've been pivotal in the development of games like BOTW, TOTK, Animal Crossing, Mario Kart World etc... They're essentially Nintendo's right hand at this point.

Actually, Monster Hunter 3 and 4 were pushed by Nintendo/Capcom in the West, with MH3 getting far more marketing than most third party Wii games and MH4 even being bundled with the New 3DS.

And Xenoblade absolutely isn't B-Class, they're some of the best JPRGs of the last few generations.