Whenever Nintendo announces some weird, un-expected piece of software, the response is typically mixed. While you get interest among a lot of people, you often also get skepticism and eyerolls. "Why are you wasting resources on (ARMS, Labo, Brain Age, Ring Fit Adventure, etc.) Nintendo? Why not use that money and staff on (insert forgotten Nintendo IP, sequel to popular IP, or New IP in mainstream genre here)!" But I feel like the skeptics who make that argument don't really take into consideration that maybe Nintendo pours money into these IPs and concepts because the development teams want to make them? Rather than higher ups telling them to make these kinds of games.
Now, let's keep one thing in mind, Nintendo is still a large gaming company, who's ultimate end goal is, and has always been to make as much money as possible. Projects need to be run through an executive or two in charge to get approved, and said executives, as well as the Board of Directors, need to be updated on the creative side every now and again, to make sure developers are sticking to budget and time schedules, as well as making sure the product is profitable enough for its intended market. That's how you'd expect any multi-national company in an industry like Video Games to run, and Ninty's no exception. But the thing with Nintendo, is that, they're also willing to let the producers and teams toy around with new ideas and concepts, that could potentially rake in big money, or if not, provide a profitable niche in their lineup.
Nintendo Labo and Ring Fit Adventure didn't get made because some executive came in and told them to make some Pilates Ring Fitness game, or preferate some cardboard for kids. They got made because the directors and programmers were derping around with prototyping sessions, and stumbled on something that could potentially find an audience. And thus got approval from the guys in charge, who felt the same thing. The same is true vice versa, the reason why you're not getting an F-Zero anytime soon is because nobody within the development teams has any ideas for the series that'd be both cool and unique enough, or profitable enough to justify a potentially insane budget, at least, not at the moment.
So the skepticism of when Nintendo introduces something that some hardcore fans don't want or think is too niche or lame, when they could be making some fanboy wet-dream game is kind of confusing to me. I mean, don't you guys want creators and artists to have the power to make the games THEY want to make, and not have corporate breathing down their neck all the time? I understand you need some suits in charge to keep things in order every now and again, but I think some Nintendo fans are too focused on games that would make sense business wise sometimes, and not focused on what the developers and creators want to do. It's why you see all these assumptions of a Super Mario Odyssey 2, or a Tomodatchi Life 2. Sure, that'd be easy money, but is that really what the developers want to make? Maybe. Maybe not. Regardless, Nintendo is a business, but they're also a entertainment business, with half of their prominent upper management coming from a creative background. So why not foster an environment where the creators have the power to make the games they want, while still keeping things in check to that they're making the company money as well?