The purpose of first party games is to sell hardware. Usually that means a big selling game, but it could also mean a unique game that attracts a different kind of customer. So obviously games like Splatoon 2 and Breath of the Wild are good, because they sell a lot. But I also think Labo is a decent product, because there is really nothing else like it, and it can attract a new type of customer. On the other hand I don't think Arms should get any sequels. Anyone who likes fighting games would rather play Smash Bros instead.
So there is not much point in making more Arms games. But Labo or Metroid Prime or Advance Wars or Cadence of Hyrule are all good games because they all attract a different type of gamer than their top selling games do.
curl-6 bet me that PS5 + X|S sales would reach 56m before year end 2023 and he was right.
My Bet With curl-6
My Threads:
Master Thread, Game of the Year/Decade
Switch Will Be #1 All Time
Zelda Will Outsell Mario (Achieved)
How Much Will MH Rise sell?
My Bet With Metallox