It's a Mario Party on a tree
More tiny Mario characters made out of clay, with loops jammed in the top! For attaching to things! The last set was identified as charms, while these are ornaments. That's totally different, right? Actually, it is, because these numerous Mario series characters are made for hanging on a tree -- perhaps a holiday-related indoor tree.
If we had the time, Sculpey, and talent, we'd do this ourselves so we could remove the family memories and appropriate holiday-themed baubles with which we've decked out our own Christmas tree, and replace them with more Nintendo stuff. The Christmas tree is the one area that's not completely Nintendo-saturated yet (now that we've had that Clu Clu Land mural painted on the front of the oven.)
