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I-mar said:

The Japanese gaming market as a whole has been in decline long ago. It is the West that natters and that is where Playstation dominates. Just look at the monthly Western charts. And PS5 will dominate even more once GTA6 hits. 

For Playstation, the West is what matters.

For Xbox, America is the only place they're relevant.

For Nintendo, every region matters, because they have a strong presence in all of them.