This still has a chance to be great, just depends on how hands-on Nintendo are with it. Nintendo can elevate a mid studio to a great one if they provide some decent hands-on through the creative & technical process. Although since this is seemingly a more mature horror-themed game, there's a chance they could be hands-off.
So I'm hopeful Nintendo are more involved in the game's process than, say, SIE have seemingly been with the Silent Hill 2 remake. Because that game looks pretty rough in places and not translating vital parts of the original game's atmosphere or ideology into the new iteration (IMO, based on what's been shown so far).