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h2ohno said:

Mario Kart is a bigger launch game than a 3d Mario would be. A 3-year-old rerelease Mario Kart is the best-selling Switch game by a wide margin and continues to sell well 8 years later. It would be nice to have a 3d Mario as well, but Mario Kart is the better choice to get people buying the console at launch and it isn't even close, especially with the pak-in option.

Mario Kart 8 Deluxe (on Switch alone) has outsold Super Mario Odyssey + Super Mario Wonder + Super Mario 3D World/Bowser's Fury *combined*. 

A lot of people are living like 20+ years in the past with how they view Nintendo.