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Ubisoft continues to be having a rough time of it as of late. Cancellations / delays of games, leaks of announcements, and, of course, its harassment scandals have all contributed to its slump. On top of all that, Mario + Rabbids Sparks of Hope underperformed on Nintendo Switch, despite the success of the original title, Mario + Rabbids Kingdom Battle. Now, according to the company's CEO, Yves Guillemot, the reason the Mario + Rabbids sequel did not sell well was because it was released too early - and Nintendo had warned them about it in advance, telling Ubisoft to save it for the next console.
Speaking with GamesIndustry.biz (via VGC), Guillemot stated, "Nintendo [has advised] that it's better to do one iteration on each machine. We were a bit too early(;) we should have waited for [the next console]." He also said, "The market is suffering a little bit with the inflation situation."
There is truth to these words. If gamers are struggling in the economy, they are more selective of the titles they purchase, regardless of their quality. And Nintendo does try to stick to one grand 3D Mario game per console. It's part of the reason we all wish but don't expect Super Mario Odyssey 2 to become real. Super Mario Galaxy 2 was the exception to the rule.
It is a shame things are this way. Games like Prince of Persia: The Lost Crown and Star Wars: Outlaws look great. I just wish they were made by a better company! In any case, the phrasing and what he is referencing is a bit ambiguous, but Guillemot added about Sparks of Hope, "Because you could play a great game. And we think it will last for ten years, because we will update it for the new machine that will come in the future." This may mean Mario + Rabbids Sparks of Hope could indeed be brought back for the next Nintendo console.