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OP definitely has a certain kind of perspective.  I think it would be more accurate though to say Japan's console market is consolidating.  It is mostly consolidating into the Switch.  Most Japanese gamers from Gen 8 are just buying a Switch for Gen 9.  

3DS -> Switch
Vita -> Switch
Wii U -> Switch
PS4 -> PS5 and/or Switch
XB1, LOL -> Series X, LOL

In the end Generation 9 hardware in Japan will mostly be the Switch.  Less hardware will be sold, because in Gen 8 some people bought both a home and handheld system while in Gen 9 they only need 1 system: the Switch. 

I voted "Japan is games", but I wish there was an option for "Japan is Nintendo".