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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.

I took a look at the Wikipedia article with a list of the best selling Switch games and added together all first-party games.

296.68 million, because some numbers aren't up to date and some games like Fire Emblem Warriors aren't there I added an additional 10 million. The latest reported number for total software sales, excluding digital only games, is 587.12 million. 

587.12 - 306.68 = 280.44 million third-party software, which includes games that are published by Nintendo, but still actually third-party like Fitness Boxing.

That's 47.76% third-party software. Doesn't sound to terrible to me.