From the little I read on various websites, it seems that Nintendo is doing away with contract work atm, and bringing the testers they needed on full time. While others were let go and given severance Packages.
The rumor floating around true or not, that Nintendo has no major upcoming 1st party games, seems logical to me.
My theory:
Nintendo knows 1st party games will take longer to develop for Switch 2, and thus we will not be receiving 8-12 1st party games a year any longer. They will likely be around 3-6 1st party games a year. How does Nintendo solve this problem?
More HD remakes, remasters, second party developed titles like Hyrule Warriors. Everyone is saying Wind waker, Twilight Princess double pack is coming This year. Haha. Why would Nintendo give us two games for $80 or less, when they can sell them at $60-$70 a piece? I also believe Nintendo will save both games to fill in for Zelda droughts on Switch 2. Nintendo *could* use less testers as well, as the remaster may not require as much work.
Switch 1 received (4) (Zelda 1st party games)
BOTW (Wii U game / Cross Gen)
TOTK (original new game)
Skyward Sword (HD Remaster)
Links Awakening (HD Remake)
I believe Wind Waker, Twilight Princess will be either saved for Cross Gen games, or strictly Switch 2 titles. Zelda is not alone in this, I believe Fire Emblem may also do the same. A new Zelda or even a re-imagining of say OoT (which I am sure is the next new Zelda game). Likely to release around the time of the movie, sometime around the time NeXt-box and PS6 launch.
SO…if this theory is correct, Nintendo may be saving completed games for Switch 2 to help fill in release gaps.
SO EVEN if Nintendo is truly sitting on completed Wind Waker/Twilight Princess games, they may choose to hold them for Switch 2, as Nintendo allegedly delayed Switch 2 to give a more robust 1st party lineup. Translation: 1st party games are taking longer to develop than Nintendo anticipated.
For now, Nintendo may not NEED a lot of 3rd party contractors if there is a Nintendo like drought (Ninten-drought) Until next gen. Nintendo will likely not even let 1st party employees test Switch 2 games until it is announced to avoid leaks. Nintendo would need less employees this way, and can hire additional employees in the future if needed. Contract, part time or full time as needed.
I am sure Nintendo has a couple of games for Fall/Holiday 2024 release. That said, I think it is a smaller amount than any normal year as they are preparing for Switch 2, and on the outside it could appear like a less, but still a (Ninten-drought) By their own traditional output. Thus they don’t need many testers until this October or so anyway.