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But Walmart does offer a discount, Walmart sells most new Nintendo Switch games for $49.99 rather than $59.99.

That's a function of it being a Switch game, not a Walmart discount. They'll be the same price at Target.

Nintendo Switch titles tend to cap at $50, not $60.

Where are you getting that from? Nearly every "large" switch title has a price of $60. Including ones that are years old.

Fair enough - I personally recall seeing a lot of titles at the $49.99 price point, but the Nintendo store itself is infinitely more accurate.

It doesn't change the underlying point, however.

No, it doesn't because if you purchase thru Walmart.com they are offering some titles "below" the retail price by Nintendo and Target.