Hmm. You may be right there in many ways. Americans are much more alienated from their families. The corporate media-state establishment has a vested interested in alienated people from each other. It wants everyone to be an individual (slave to consumerism) and to pursue freedom (slavery to consumerism) instead of having a family. In a broader way it wants to keep people divided, and destroying the nuclear family was one of the founding goals of the much-publicized BLM. The media loves to report on parents and children turning against one another, how freedom is more important than family, the usual corporate Death Cult values. Japan is a much more traditional society, alienation is more discouraged there, working together has always been a thing, the "Salary Man" being a classic archetype. Nintendo does a ton of sales in Japan and has the market cornered, so it is logical they would go for a more Japan-friendly market.
I bought the Labo VR set because Labo just seemed cool, but expensive, and then one day they announced you will be able to play through all of BOTW with a $40 experimental VR set. I jumped at this and loved it. Yes, I don't use it often, but I don't use my Oculus Rift that often either. They are luxuries and curiosities. VR is the state of the art in entertainment, and everything is early access at this point. At any rate, outside of the low resolution, I found the experience incredible, and comparable to both Google Cardboard and Oculus. Nintendo did not innovate here in the sense of making the most powerful VR, but offering a sub-$50 option is quite an advance for the marketplace acceptability in the long run. Plus there are all the other Labo kits, which are quite innovative, stretching the definition of game and reality, of learning and playing. The very tactile nature of it all is very cool, and falls in line with the Nintendo tradition of creating toys.
Yes, Serious Gamers will flinch at this term. Toys. I like it. I mean these are games you are "playing". We aren't accomplishing anything here, just pure entertainment, let's be real. But gaming can offer many experiences. We have everything from hyper realistic cinematic zombie shooters to Pixar-style platformers. I think gaming is advanced enough to offer a wide palette of values. There isn't a set "Video Game Values" that objectively exists. The studios and devs will come out with material, some selling more than others, and the nature of the industry is under constant ebb and flow. I disagree that Nintendo has shown a lack of innovation.
Recently I bought Ring Fit and that is another very interesting and experimental release, catered this time not just to kids but primarily to parents and adults. The controller is a compression wheel and your legs. Yes, it has been done before, but this is pretty great stuff. To innovate you don't have to just be the first to do something. You have to do it well, you have to expand the market. Nintendo does both. This is a big hit title, and it is a videogame that is actually good for physical body. I wouldn't mind seeing more of these.
As an America, I grew up with an Atari 7800, it mostly playing used 2600 games. I had to suffer with Pac-Man and E.T. and other western developed games, including a flood of cheaply developed trash, and basically play the same 80s arcade style games for the rest of the console generation. When Nintendo first came along, they got a lot of flack, as they always do, for their "Nintendo" way of doing things. They had strict rules for developers and the seal of approval, when the NES first shipment of units failed, they offered free repairs, putting customer service ahead of profits. At the time, people said Nintendo should just allow anyone to make games for the NES, and there were lawsuits about this. Meanwhile Atari games flooded store shelves at $1 a piece fire sales. Nintendo kept quality control on the NES because of their particular way of operating. Like it or not, it has served them well in the past and will continue to do so.