In an interview for Asahi Shinbun, Tatsumi Kimishima has stated that Nintendo would like to release its first film within 2-3 years and that as much of the production as possible will be done within the company.
This decision seems to come as a result of the poor performance of the 1993 Super Mario Bros film with Kimishima saying “That live-action film didn’t do particularly well at the box office. From now on we’d like to do things ourselves more than just license something” adding “We’ve already tried that, so perhaps not this time.” when asked about another live-action movie.
He went on to say that Nintendo would like to make movies using IPs that are popular, such as Mario and Zelda, as there is high demand for them but that the primary goal will be to increase the number of people who are familiar with Nintendo IPs, to support the core games and hardware business, and not for the films themselves to be profitable.
Source: God is Geek