Nintendo plans to use more Western developers to work on Nintendo IP. Company President Satoru Iwata told investors that it's part of a plan to attract core audiences from around the world. He said the number of Japanese developers working on Nintendo's games has become "relatively small."

“In addition, because the expressions in games are becoming more and more photo-realistic, I imagine that the cultural differences in acceptance have started to be reflected more clearly. I think this is the reason why western users tend to prefer software created overseas than software from Japanese software developers,” Iwata explained.

This doesn't mean Nintendo is walking away from "Nintendo-like games." It's simply acknowledging it has to keep up with evolving consumer demand. "I feel that it will become necessary to reinforce the development resources in the foreign countries," Iwata said, adding, "I hope we will be able to show you something like that at E3.” Source: Industry Gamers