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curl-6 said:

Third parties do not need to sell as well as Mario or Pokemon to be profitable though.

Doom sold like half a million physical on Switch, but that was evidently enough for it to be worth their while following up with Doom Eternal. Ports like Crash and Skyrim sold over a million, which is far more than is needed for conversions like those to turn a profit. April NPD lists Mortal Kombat 11, a third party game, as the best selling Switch title of the month. Octopath Traveler did so well that Square opened a new division for the purpose of making Switch games.

Yes they can be profitable, but they're also not profitable enough for companies like EA to release a Fifa that isn't half-arsed. There is profit to be had on the system for third parties, but not BIG profit and as such it'll never come close to the support the other systems get.

Personally I don't really care, I buy a Nintendo system for Nintendo games and PC is currently where I play third parties. It's just an interesting thing to ponder, if Nintendo games didn't do as well, would third party games have more of a chance? But then again if Nintendo games didn't do as well the system probably wouldn't sell? It's a weird chicken and egg situation Nintendo have gotten into.