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Farsala said:

I think one big issue is comparing peak Switch SW sales (year 5) with the opposite of peak PS5 SW sales (year 1).

Sure you can compare to the Wii U as well, which peaked early and died quickly.

But the issue is that the PS5 doesn't have any major Japanese exclusives yet. Most are shared with the PS4, and it looks like it will continue for a year or 2. Sony apparently believes it is worth it, we shall see in the coming years.

I think being so alarmist about the PS5 so early in its life is just premature. This premature alarmism is just exacerbated with the massive supply issues worldwide. Hopefully the picture becomes more clear with proper supply and some solid Japanese exclusives.

If the cross gen support for PS4/PS5 is going to last as long as the cross gen support for PS3/PS4 then we truly won't see much japanese exclusives for PS5 until early 2023 at the earliest. Even then most if not all major japanese games now include PC and Xbox, so you have other options to choose from.

Even then everyone is expecting the PS5 to sell less than the PS4 since the PS4 sold less than the PS3 (and Japan is the only region where the PS4 did worse than PS3 in both hardware and software).