This is basically the Switch's killer launch app.
There was a lot of stuff that seemed weird about the Switch from day 1. There were some features that seemed thrown in just for the hell of it.
HD rumble was OK, but didn't really seem worth making a big deal over. The IR camera on the right Joycon was useless for anything but one minigame in 1-2-Switch and its function didn't seem apparent.
The Switch also didn't seem to have a killer App. 1-2-Switch seemed like a throwaway, and Breath of the Wild was obviously not developed with Switch in mind. The modular nature of the Switch seemed neat, but underutilized. The prediction of Wii like sales implied they'd be trying to somehow engage the Wii audience, but nothing in their software lineup seemed equipped for the job.
Nintendo Labo kind of brings it all together. The modular nature is key to the software. HD rumble enables the joycon to be used as a motor to move the little cardboard robots. The IR camera seems useless if you're holding it in your hands, but it makes sense if the Joycon will be in a separate enclosure. It's something that will generate buzz (positive or otherwise) and definitely reaches beyond the hardcore gaming market.
This was the idea for a killer app from day one. The launch last year was essentially a soft launch. If the Switch was announced with this from the start, it would have been immediately written off as a kids toy. Having a year that was focused almost entirely on traditional titles allowed them to build up some credibility. The Switch got a reputation as a success and was on solid ground before they debuted their wacky new concept.
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