With the update, users are now able to create groups to sort their games into by going into the All Software menu, and pressing L to view and make new groups. Titles may be placed into multiple groups and sorted freely, and groups can be named to represent certain themes of software, such as game franchises or genres. Accessing this feature requires that the user own at least 12 software on their Nintendo Switch system, and there is a limit of 100 groups per system with 200 titles in each group.
- Sources
Nintendo Support: How to Create Groups of Software
en-americas-support.nintendo.com