This is a feature that gamers have long been asking for, especially since consoles like the Nintendo 3DS already offered that feature to users, so it was unclear what took Nintendo this long to bring it to the Switch, especially since it feels like such a basic feature to have. But we suppose better late than never, right?
However, there is a bit of a catch because according to Nintendo’s support page, the company says that this feature and menu is only enabled when users have more than 12 titles saved to their console, so if you have less than that, it seems that this won’t work and you’ll still need to scroll through your games.
Also, up to 100 “groups” (which is what Nintendo is calling folders) can be created with a maximum of 200 titles per group, but then again this isn’t really a limitation per se since we doubt that anyone has that many games on their Switch anyway. The update should already be live so fire up your console and check for software updates to get your hands on it.