Currently Online 
So, the reason big-budget, AAA games are not selling well in Japan is either:
A. Japan's fault for preferring a hybrid form-factor.
B. Nintendo's fault for making the form-factor that Japan wants and dominating the charts with evergreen titles.
C. Third-party companies' fault for not compromising their games to work on said form-factor.
D. Sony’s fault for not making the PS5 a hybrid system to compete with Nintendo in Japan.
E. Nobody's fault; it's just the state of the gaming industry in Japan due to very conscious decisions from all involved and the painfully obvious gaming climate in the country - hint: they prefer portables.
Monster Hunter, Minecraft, and the Momotaro games have done exceptionally well on Switch and several other titles like the Octo-games have seen success as well. I would say let's see how well AAA titles like Resident Evil and the like do on Switch 2 before we declare that Japan is done with every game that's not Nintendo.
