LJN never developed a thing, they only published games that Nintendo didn't want to.
LJN was just a publisher, plain and simple. Nintendo only gave them the license to publish games, and it was not Nintendo's responsibility to publish and market games for third parties. That's just Iwata's Nintendo showing their equivalent of white guilt for what they did 30 years ago in hopes of getting back third party support. It's not working.
That said, a 'bad' game is purely subjective. Most of LJN's games were playable and could be completed. Were they good games? It depends on the game and on the person playing them. However, the aptly named Uncanny X-Men is what I'd call a terrible game.