Simple, the Switch is Unique gaming machine thats BOTH a handheld & a home console Hybrid, which helped its success in the Handheld/Mobile dominant Japanese market
Imo calling Switch a traditional home console in the same sense as PS/Xbox is no different than calling PCs with Steam Big Picture a Home console, or better yet hooking your iPad to a tv !!
I am not calling Switch a home console, but I know what the issue is.
When Switch sales get counted towards the home console market, it strips PS fans of their most popular excuse for low PS sales in Japan. Supposedly Japan doesn't like home consoles anymore, but at the same time Japan somehow still likes to play video games on the TV a lot, hence why the standard Switch has remained the far more popular Switch model despite featuring a notably higher price tag. The PS5 being a home console isn't the real problem of the PS5, just like the Vita being a handheld didn't give it an appreciable advantage over the PS4; in Japan the PS4 sold more than the Vita.
I actually agree with all your 7 points. The part where we disagree is that you think it is okay to use Switch numbers when talking about home console and handheld markets separately, but as many people have already pointed out, that will only give you a distorted perception of the market as a whole.
"How is the home-console market doing? Oh, it is doing great! We have sold 14m units so far."
Do you really not see what is wrong with that approach? Both statements make it sound like everything is going better than it really is.
Yes, Nintendo has nothing to worry about this generation but Sony and MS do, as it is quite evident that Japanese audiences are shifting away from traditional home consoles.
It's not a distorted perception. If you are a game developer, your life got a lot easier this generation. You don't have to ask yourself whether you should make your game for a home console or a handheld console, because there's one very successful console that leaves it up to gamers how to play your game.
"I want that people play my game on the big screen. Oh, there's a console with a big installed base!"
"I want that people have fun with my game anywhere they want. Oh, there's a console with a big installed base!"
It sounds as great as it really is. No more busywork to make multiple versions of your game to be on the safe side. No more guesswork where the market might be moving.