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We know from Nico Partners that before the Switch launched in China there were around 3 million Switches on the Chinese gray market,

As Japan is the only country that's getting substantial PS5 shipments in the region, we can assume that quite a lot of the hardware sales actually end up being resold in China and other gray markets in the region. This would explain why the best-selling game on the PS5 is failing to break 50K physical sales on a user base of 345K.

Once the PS5 launches in China we hopefully see it becoming more readily available to regular customers which in turn should help the software sales.