I'd
highly suggest reading this discussion from 2000 between Miyamoto, Itoi, and Iwata. It pertains to the cancellation of MOTHER 3 on the N64, which was probably their most ambitious project at the time. It's an enlightening read.
(
https://yomuka.wordpress.com/2013/08/18/earthbound-64-cancel...)
It's long, so I'll throw in a few quotes.
>Miyamoto: Game quality was at a point when it caught up with top-tier entertainment, with visuals that had come so far that all we had left was coming up with new ideas for us to express. It was like we gained incredible calvarymen to make an unstoppable army. […] We came in right during that time period. I think we got distracted by the prospect of building up that powerful army and lost sight of how we were going to form our battle strategies.
The following snippet is the highlight. Note that Iwata became the president of Nintendo shortly after, in 2002.
>Iwata: There’s this really strange common sense now that says it takes a huge team of people working with a large scale and a lot of time to create a good game. A good game is supposed to be based on a good idea that’s very fun, even if it’s small. That notion disappeared somewhere along the way, and it’s turned into a battle of who can spend the most time and utilize the most manpower. You could even say that Nintendo needs to take a stand against this.
The result: the adoption of the Blue Ocean strategy.
http://www.gamesindustry.biz/articles/2013-10-10-nintendos-i...
I'm reminded of a Twitter thread in 2013 by CliffyB, where he talks about the game industry's obsession with inflated budgets (http://www.igameresponsibly.com/2013/06/13/cliff-bleszinski-...). This is what Nintendo sought to avoid with a slower adoption of raw power and instead making more focused games.