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Shadow1980 said:
IcaroRibeiro said:

I would like to read them because I don't quite get it either. 

I think it could be due to multiple possible causes:

1) An aging and static population, one with fewer younger people than in generations past. The problem with this one is that it doesn't explain handhelds remaining popular with no hint of decline (the 3DS over-performed in Japan, and the Switch will probably sell as much if not more than the DS & Game Boy did there as well).

2) Minimal inflation over the past 20-25 years. Hasn't been a huge deal for hardware, but definitely for software, which does appear to have gotten more expensive over time (need to do more research on that), as opposed to much of the West where software prices have gotten substantially cheaper due to inflation. This would explain why software sales have declined faster than hardware sales.

3) It also seems like disposable incomes have declined in Japan over the past 20 years, which may make more expensive gaming options less attractive. Handhelds and their games are cheaper.

Point 2 makes sense, point 1 is correct but doesn't explain why portable gaming is so popular (not only portable consoles, but smartphone gaming as well). Point 3 no longer holds true as Switch games are at the same price as other consoles.

I was tempted to guess aging population means less kids and teenagers play games. With Japanese population being composed of grown ups sometimes commuting to work is the only option for them to play games. Except teenagers and young adults don't have much free time either as they not only spend many hours at school but are also suppose to keep studying at home. 

Maybe the reason why they pick handhelds is because it's a medium that takes a bit more time to evolve due to technological constraints. Think of how much more popular 2D Mario is compared to 3D Mario (which is kinda of a mid tier game sales wise when compared to other Nintendo IPs), gamers in Japan being on average older means they want something they are familiar instead of something that will force them to master something new.