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Kai_Mao said:

If I’m not mistaken, not only is Nintendo dominating Japan, but they’re doing really well in other parts of Asia as well. They have a respectable showing in China despite the slow output of games and they’ve been dominating software charts in Taiwan and South Korea. So overall, Nintendo is showing you can do well in every region in the world (as they’ve also done well with Switch in Europe). So it’s unfortunate that Sony doesn’t see it that way or they do but they’re not providing any interventions at this time.

A difference is that what Nintendo inherently does well, works globally. They haven't specifically had to tailor it or open new studios just to appease the West or vise versa. The only big Playstation IP sony have produced in Japan is GT, otherwise they've always been reliant on 3rd parties (Square Enix, Capcom etc). They have plenty of Genre diversity from 1st party output, but nothing that has quite clicked with the Japanese market in the last decade apart from Ghost of Tsushima, and to a lessor extent Demon Souls/Dark Souls. And unlike Nintendo, Sonys commercial strength lay in more "Mature" games developed by the western arm which will struggle for a legal release in a place like China, where as Nintendo's commercial strength lays in more approachable, inoffensive titles like Mario.

We've seen with all of the big 3, that its actually very hard to shift gears. Its taken a long time for MS to try to leverage their 1st party again Sony, or for Nintendo to find its foot in HD developement... When sony tried to copy Nintendo  back around 09/10, all the games flopped (Move/Playstation All stars/LBP Karting) So if there were any software developments happening on Sonys side I wouldn't expect it over night, they've learned to mostly stay in their lane. And up until 2017 they were the dominant home console in every market.