The path is pretty predictable for Nintendo.

When their popularity drops, they ease up on restrictions. See the pressure from Sega in the 90s to drop Nintendo's infamous super-censorship on not just adult topics, but swearing, religious symbols, even anime (for countries outside of Japan).

While Sony was eating their lunch, Big N continued to relax those restrictions culminating on being the only platform to allow Manhunt 2 (in it's final form, betas were much more violent, but that's a different discussion).

Then Wii came and things had to be friendly again. WiiU flopped and the floodgates started to open to 3rd parties to do whatever they want.

Now that Sony is swirling in the toilet bowl with their own censorship and regressive politics, Nintendo picked up the crown and now they're flexing again, now that they have power. Why? What's the point of power if you're not going to use it, and censoring art is something both the left and right happily agree on.