Did they though, make the right choice? On Switch there's a good chance it would have sold just as well or at least nearly as well, considering Switch's Japan dominance. But it would have cost less to make for Switch. So I wouldn't say keeping it off Switch was the right decision at all.
Or they could make another MH game for Switch and sell another 10-15 million, and have it cost less to make. So what's your point? Or they could double up and make a version for those other systems and a version for Switch and sell maybe 25 million without having to make a whole new game. Either way you cut it, Capcom isn't doing the smart thing. Seems to come down to third parties want to promote games with the highest level graphics, and they'll decide to forego more money simply for that sake. Hard to understand the business behind that, but that is what we've clearly seen for years now.
MH only sells 3-4 million in JP, SW is not going to change that.
MH on Nintendo sold 1-2 million overseas while MHW on PS4/PC sold 12 million+ overseas. Cost means very little when one PS4/PC game outsells every single 3DS game across 7 years in just 2 years: return on investment is so much bigger with MHW.
The idea that the old model is more profitable is factually wrong. Capcom broke their FY records with MHW.
PS4/PC simply have a bigger audience for MH than SW ever will.
Some of you say you want Capcom to do a spinoff for SW. Again, not the best route, as a spinoff on PS4/PC/PS5 would sell multiple times better than a SW game.