I feel like too many anime are coming out. Most of which are very meh or worse. Instead of establishing new studios to probably get more anime out, wouldn't it be better to cut back on the amount and focus on quality?
I don't know this studio or publisher, but generally, it's not a zero sum game - it's not one or the other.
Establishing more studios could allow existing studios to invest more into quality.
Really, it entirely depends on how they implement and manage them.
/edit: to address the overall quality: I think it's an overall issue with the industry and commerciality. How it's set up, what it incentivises, and how it's being managed.
You don't know Kadokawa? They own like 80% of the entire anime industry. They own FromSoftware. Maybe you haven't heard of Kadokawa, but you've most certainly heard of at least one of their studios or IPs.
Establishing more studios could allow existing studios to invest more into quality
It could and that would be great, but I doubt that's the reason they're doing this. There are about a 100 anime this season alone (counting the current season anime on anilist). We don't need more anime, but I wouldn't be surprised if more studios, means more anime, even though they're already exhausting the talent pool, instead of the same amount or less but of higher quality.