You guys are talking about business health. I'm talking about their portfolio. Before Nintendo they were making; After Nintendo they're still making Xeno  games. They're still making the same games. 

By this point they should be hand picked to introduce a brand new Nintendo IP that will stand with the Legacy ones. By this point they should be leading development on a ZELDA game, not backend grunt work. At the vey least the should have more than one active IP... c'mon. Those are signs of a growing studio.

Yes it is. It is a Japanese Anime RPG aimed at Japanese Anime fans. It is in the same category as Tales, Star Ocean, Atelier which are great franchises. A's category are for games intending to reaching audience. 

How do you know that Retro has ever wanted to make an original game that doesn't use any existing Nintendo IPs? I have never seen a single interview or news report about the devs being forced to make Metroid and DKC games when they really wanted to do their own thing.

I own three Monster Hunter games on my American, region-locked Nintendo consoles, and have access to several more. Several of them have sold more than a million units outside of Japan. That might not be MH World numbers, but it's not nothing.

Regarding Monolith, how do you know that making "B class anime RPG's" is or is not what Monolith wants to make? You have no idea if Monolith is choosing to be the Xenoblade factory on its own, or if it's being forced to.

Growth is not just IP output for a start they did introduce a new legacy IP that's what Xenoblade has become to the point it influenced Zelda, having a load of pointless IPs isn't better than having a more focused approached this even rolls into the next point as the background work they're doing is a strong sign of growth, their fingerprints are on all the major first party titles they don't need to be pumping out loads of IPs because they're already heavily involved in working on legacy ones and elevating them. You can have one IP and focus on evolving it which the Xenoblade games have done with each installment.

Their open world design is only really challenged by R* look at Xenoblade X for starters, this level of design helped elevate Zelda in BOTW and TOTK that's the type of growth they've achieved, to highlight the point when people see their next project they're not just assessing the game in front of them but what it means for the IPs they're involved in, Monolith went from a small studio to a large pivotal subsidiary that specializes in design and R&D.

So your argument is that Xenoblade aiming at a specific audience is a bad thing, and that it should be homogenised to appeal to a wider audience?

Trying to please everyone just results in blander games. Xenoblade serves a key role in diversifying Nintendo's first party lineup by offering something EPD's games don't, it doesn't need to be the next Fortnite.

I'd hate for a company that is multiplatform to stay on one console but if its like GameFreak where they can freely create games for other platforms with their own IPs sure I'm fine with that.

Regardless, I get all platforms and I'm neutral when it comes acquisitions , its whatever to me.

Yeah, as someone who doesn't care for Xenoblade (but watched my son play it on Wii and saw the potential), I really think Nintendo should let Monolith try something new.

Perhaps Xenoblade is what they want to make, and Nintendo's simply letting them do it. Unless there's some evidence on it, I don't think we can assume that Nintendo is commanding them to stick with the series.

Perhaps. Given that whole XC IP in 15 years sold around 9 million copies, it's certainly a good thing for fans of XC, if that's actually the case and Nintendo is just letting them do their own thing.

I think some acquisitions here and there are fine but it's mostly problematic.
Nintendo still put out plenty of games in some generations prior to Switch while having partners for Nintendo titles that weren't owned by Nintendo (Intelligent Systems, HAL, etc.) and plenty of games have come out for Switch with also some from studios not owned by Nintendo.
One of my biggest concerns about acquisitions in addition to Nintendo becoming even bigger than they already are forced console exclusivity even for non-Nintendo IPs potentially.