Nintendo knew Nintendo Labo sales would be different from that of Mario and Zelda, have a variety of non-franchise Switch ideas to share at a later date

Coming from Nintendo president Shuntaro Furukawa during an investor Q&A...

We released Nintendo Labo as a new way to play, which is something I think the consumers who purchased it have appreciated. And because it is the kind of product that makes a good gift for children, we expect sales growth during what will be the first holiday season for Nintendo Labo. We knew from the start that the sales trend for Nintendo Labo would be different from
that of games like Mario or Zelda, and we want this to be a product that continues to sell for a long time as a new way to play on Nintendo Switch.

As for any initiatives to expand the Nintendo Switch user base without relying on our franchise titles, we do have a variety of new ideas besides Nintendo Labo. We will announce these at a later time.