[...] Decent hardware sales are better than bad hardware and software sales, but what we are seeing right now still can't be encouraging for Japanese third parties who want to develop PS5 games.
And that is the main point. I think everyone agrees the PS can sell big numbers worldwide without the japanese market. But the japanese game devs are still important in this gaming age, and therefore the japanese market is still important. If PS loses exclusivity to typical japanese game franchises, it starts to look very similar to Xbox. And that is probably bad for some of the classic PS fanbase.