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RolStoppable said:

PS sales aren't declining in Japan because of a major loss of interest in console gaming, they are declining because people buy Nintendo consoles instead.

Could it not be both? It's clear that the Switch's success has taken and will continue taking large amounts of customers away from Playstation in Japan but I do think a big factor in the decline is also interest moving away from pure home consoles and towards handheld devices such as handheld or hybrid consoles and mobile gaming.