Of course it deflated. Nintendo doesn't have that much first party studios, not enough to support their console by themselves at least. And that's what it always comes down to. Nintendo put all their eggs in year one to get the console popular, now they have little to nothing for the year after.
I remember everyone calling the first year of the switch some golden year of game releases... How obvious can they make it? How can anyone be shocked by this? Year 1 was basically inflated to make the switch look good.
Year 3 should be more balanced with a few good titles more evenly spread out. The stock should recover around then to a more even state.







