The main reason for a popular console to decline is due to saturation of the market.
Japan has this issue severely due to its aging population. The purchasing power of the big spenders has declined over time and that leads to less people buying stuff and economic recession. During the 1980s and 1990s innovation was rampant for Japan and modern video game consoles came to be, as well as an active rich population to support it. The video game market in particular has declined quite strongly in terms of HW. The time when people spend money is usually between the age of 15 and 64. This proportion of population peaked in 1990 at 69.7%, and stayed strong through 2000 at 68.1%, and then declined to 63.8% in 2010. 2020 reported to be 59.4%.
Point being the total market has declined too much for the Switch to achieve numbers like the DS. This is without accounting for China undoubtably scalping the Switch in the early years, leading to less actual Japanese owners in reality. Nintendo also wants more profit per system than with the DS, so will keep prices high. It isn't only Nintendo consoles of course. Xbox, Playstation, Sega, and Arcades have also declined in Japan.
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