Level-5 used to be capable of creating breakout hits. They weren't able to maintain those hits, however. In the past year, Level-5 seems to have become a mess. There's a lot of delays, Yo-kai Watch 3 wasn't as successful as everyone hoped after YW2, it doesn't seem like there's (ever been) much hype for The Snack World. It's a mess.
I haven't been following the responses to Lady Layton, but it doesn't seem like a bad game, does it? I also have high hopes for Inazuma Eleven Ares. Let's hope that hope is correct and that these projects will lead the way back to the top for Level-5, because they have a lot of potential. The big question is of course how long they'll keep making games for consoles. 3DS ports and smallers projects for smartphones are already available/in development. It may take a couple of years, but I think Level-5 will come up with something huge again sooner or later. Question is whether it'll be for consoles or smartphones... (I think Nintendo is doing great in making the Switch an attractive alternative for kids (which are Level-5's main audience, ofc) to smartphones, so I think Hino & co. will keep making console games for now.)