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S.Peelman said:

I think people would be surprised at the development costs of such a game, if Nintendo'd ever share it. Production time was probably quite long. Testing all kinds of stuff, the innovating and design process takes time I imagine.

Agreed.  The kinda of material to use.  The thickness and sturdiness.  The software, while simplistic, still has a team to develop it.  These things add up.  And if Nintendo was truly making bank off of these games, like some think they are, Nintendo would be pumping them out left and right, even if the sales weren't as high as a AAA game.  Obviously, they aren't making bank on Labo.  Nor achieving their first goal for Labo, push HW.