It's actually not at all enough for a release on Switch to be profitable. It has to be more profitable and offer a higher return on investment than other options or ways that the time, staff, and money spent on the transition to Switch could take.
I dont think people realize how unprofitable games genreally are, most games do not make a profit. I've even worked on more than a couple that never made money, and to be honest I'm not even sure if the current title will, 3/4 of the workforce are working from home due to Covid, We are already 5-6 months behind schedule and we only started 12 months ago. Studios will use the profits from a smash profitable game to make up for the other games that lost money.