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It's obvious at this point that a significant portion of PS5s "sold" in Japan are not actually in Japanese homes, hence the awful software sales.
This is a result of the global supply situation; if PS5 was available in sufficient numbers both in Japan and globally, it wouldn't be getting scalped and exported like this.

I'm not saying PS5 is going to do amazingly in Japan or pose any real opposition to the Switch's dominance, but taking the current numbers as a measurement of how its going to do long term just isn't realistic. The current circumstances are highly unusual and impermanent.
The chip crisis will eventually alleviate, and Japanese third parties are not going to abandon Playstation because the big ones still sell well on it due to overseas sales shoring up declining local sales.