I think it's a bit of both.
As a company Nintendo is probably too small for what it needs to be to service all its IP while making new games. Nintendo should be buying up talented studios like platinum, crystal dynamics, High Moon, Mistwalker, Tantalus ect the former metroid guys behind Recore should have been given a spin off studio. Even Capcom and Sega for their IPs
Expanding their own internal talent to create new experiences/more unique experiences is something Nintendo badly need to do. Nintendo should have an Inhouse version of Turn10/Polyphony Digital that makes realistic racing games. The only reason they don't is essentially incompetance (as well as being risk averse)
Edit: As for wether they understand their own IPs. It's really hard to know since they don't have the time or budget to fully explore most of them, however everything related to Metroid has been pretty tone deaf.
Also using a combined "Nintendo Engine" like EA uses Frostbyte would solve a lot of their cost issues if every game iterated on the same engine continually adding more features
Edit 2: The clueless about their own IP arguement is definitely boosted by their handling of Splatoon. The turf war game mode is perfectly suited for Esports play. The handling of the Competitive Smash community ect. Hopefully this will improve after the companies most recent restructuring
As a company Nintendo is probably too small for what it needs to be to service all its IP while making new games. Nintendo should be buying up talented studios like platinum, crystal dynamics, High Moon, Mistwalker, Tantalus ect the former metroid guys behind Recore should have been given a spin off studio. Even Capcom and Sega for their IPs
Expanding their own internal talent to create new experiences/more unique experiences is something Nintendo badly need to do. Nintendo should have an Inhouse version of Turn10/Polyphony Digital that makes realistic racing games. The only reason they don't is essentially incompetance (as well as being risk averse)
Edit: As for wether they understand their own IPs. It's really hard to know since they don't have the time or budget to fully explore most of them, however everything related to Metroid has been pretty tone deaf.
Also using a combined "Nintendo Engine" like EA uses Frostbyte would solve a lot of their cost issues if every game iterated on the same engine continually adding more features
Edit 2: The clueless about their own IP arguement is definitely boosted by their handling of Splatoon. The turf war game mode is perfectly suited for Esports play. The handling of the Competitive Smash community ect. Hopefully this will improve after the companies most recent restructuring