1 2 Switch is Nintendos biggest mistake. It should be a pack-in. I wouldn't even make the $20 argument, its not a game worth buying.
Now, I haven't seen a ton of the game but I'm pretty sure its mostly stuff you play without a screen right? So let's think about how much effort went into production of it. There's probably some really basic graphics on the screen during the game, if that even, it could be a stylized title card or something. Then some basic menus to navigate to the different games. That's it? Certainly doesn't require a very big budget at all to make something like that.
Also just for the type of game this is, it's a glorified rumble tech demo. Milk the cow and feel the rumble. Tilt the controller and pretend it has balls in it and feel the balls. Woohoo... $50