Ghosts of Tsushima sold incredibly well. I guess Western games can sell just fine in Japan as long as they have a Japanese theme.
Nintendo actually sold more Switches this week than physical copies of Paper Mario. I imagine that it happened something like this. Nintendo saved up some extra stock for the Paper Mario launch, but then Animal Crossing and RFA fans rushed in and bought half of the hardware. AC actually is up 28% this week and (not coincidentally) there were more Switches available. That should give us a clue that there is still a bunch of pent up demand for Animal Crossing.