Oh that’s absolutely why. If they dumped everything at once people would play what they wanted to play and drop the subscription. By doing this people come back.
If Nintendo doesn’t keep NSO as-is for their “Switch 2” people will be EXTREMELY pissed, but it’s Nintendo, they’re fine with that.
Isn’t that pretty much it? Everyone wants to make video games. All of the sudden everyone wants to invest in video game development because they realized there’s money in it. But video games are a big commitment for consumers (compared to most consumables), we literally only have so much time to dedicate them and there’s SO MANY GODDAMN GAMES. Like, an Eldritch horror inducing amount of video games if you have FOMO. And that’s still a drop in the ocean compared to all the people who want to make video games. Hundreds if not thousands of cool games go completely unnoticed by basically everyone every month, seemingly.
There’s a bizarre sort of supply / demand triangle going on.