Companies don't choose who they compete with, the market does.
Anyway, I like the idea of Nintendo grabbing some goof Western devs. The West runs the game industry these days. This gen the big titles were almost all Western where as in the past Japan dominated. Japan has REALLY dropped the ball regarding console games with Nintendo themselves being one of the rare exceptions. Companies like Square Enix, Capcom and Konami are mere shells compared to what they were like even last gen. The market has changed.
But it is important that Nintendo grabs GOOD devs, not the Olsen Twins games guys like they did before.