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Those declines are fine. Companies make money mostly by selling games. They can keep the console running without much trouble and have no need to rush a new one as long the fanbase is engaged with the releases

Rushing a new console without titles to advertise the console is a very good way to ensure your console is pointless. Loved TOTK but it's by no means a next gen hardware showcase. It was totally designed with base Switch in mind and by all accounts run on Switch and was advertised to Switch long ago.

Charging 500 USD (console+game) for a port of a Switch game that your are essentially not releasing on their designed platform (Switch) to rush people into buying Switch 2 is not a good way to start a console launch