My examples are from the 3DS, as that shows the pedigree they're capable of, especially on the much more limiting hardware specifications of the time.
That is for a reason.
The Switch is when they didn't do as well.
This would be exactly the portfolio a corporate buyer would look for in a Gaming Company, with a history of great work and franchise IPs but also a slump so as to lower valuation and raise bargaining power.
If you're still baffled by this, then there's nothing I can really explain to you about what constitutes a good buy.
Still, if it's your money and you want to buy the best company when they're at their peak, who am I to tell you no.
just becuase a company was great on a diferent generation doesnt make it great on the next, becuase for all we know the talent might have been gone and picked up by other studios already and only the name remained.
Case in point Rare
Rare was amazing on snes and n64 days, they squeezed the hell out of the n64 made it r they wanted and even more, besides them or factor 5 i dont know who made the best games tech wise on the n64.
Then they were bought by microsoft with a console that had more than 10 times the power of the n64, most talent left and the ones that remained could even take the best that the xbox could do techwise not even close.
sometimes companys are only good because they have certain devs that really understand said hardware and make everything they can to take advantage of it, when they are bough and people leave they turn out a bad investment in the end.
And while i dont know the history of level5 i would bet many developers already left the company and the oens that are there are probably not very good, and their ips arent really worth the money they would charge nintendo to own them probably.