I mean, what were you guys expecting for hardware?
Now that Obon Week has come and gone, the Switch Lite is around the corner, and the new Switch model comes in the next update - meaning Japanese customers are holding out for not 1, but 2, new Switch models. Baseline sales were going to take a dive at some point. If you check the rankings on Amazon Japan right now the new, upgraded models are #1 and #3 respectively with 2 days left before they release. Sales are going to go right back up next week.
Pancho A. Ovies
Nintendo Switch in Japan (Famitsu): 2018 vs. 2019
PlayStation 4/Xbox One/Nintendo Switch: 2018 vs. 2019