Some games Global appeal depend on them being built around more powerful hardware and wowing with their scale and technology (Elden Ring/Monster Hunter World/Resident Evil... historically mainline Final Fantasy)
Others games do not and in fact the developers can barely take advantage of PS4 hardware, either through lack of experience, budget or simply through a preference of artstyle.
It's just important for developers to be smart in deciding what platform to base their development on and whether their primary audience will in Japan or be in the West. Something like Soul Hackers 2 could easily be built with Switch as the primary platform in mind and not loose any appeal amongst playstation gamers WW. Something like Tales of Arise is somewhere in the middle, and the recent peak the franchise has seen is definitely associated with its quality of presentation. Something like Monster Hunter World or Elden Ring, would simply not be the same huge success WW if built primarily for Switch.
I'm actually more in the boat of thinking that although platform plays a role, its more the direction of games that 3rd parties are developing that is holding them back in Japan. There's such a huge gulf between what Monster Hunter achieved on Playstation 4 and what pretty much any other games was able to sell. Even with its fairly modest 10m audience, PS4 should of had many more million sellers and a least a handful of 2m sellers.
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