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Signalstar said:

Apparently 1st Party sales really do account for 80% of Switch software sales. p20

https://www.nintendo.co.jp/ir/pdf/2021/210506_4e.pdf

That is not a healthy ratio to say the least.

The thing is, when they report that " X 3rd party games sold over a million" they don't mean actual 3rd party games in general but games they publish themselves, that's already a huge difference.