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There are indie developers that didn't limit themselves and managed to find success while being even smaller than Falcom's entire staff. When you intentionally limit yourself to a niche, then you will not be able to grow and find success.
Instead of waiting for Nintendo to call, they should contact Nintendo and request support in Switch development. If they don't want to take a hit, then Falcom should explore the indie angle. At best they can release something for the Nintendo eShop on Nintendo Switch which would reduce risk (but not eliminate it completely) since I agree that they are too small for retail by themselves without backup.