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Japan isn't the west, there are a ton of Japanese third party games that sell more on Switch in Japan than on PS5, people seem to focus only on stuff like Resident Evil or Final Fantasy, we have stuff like Fantasy Life that sold 165k+ on Switch compared to 20k+ on PS5, as well as Demon Slayer 2 last year that sold 180k+ on Switch vs 20k+ on PS5. PS5 is mostly dominating when it comes to third party sales for some historically PS connected AAA IP, mostly everything else third party sell more on Switch in Japan. That is bad news for Sony, because it means many more Japanese studios have a stake in the Switch/Switch 2 being a success, while i guess PS5 doing well in Japan is just good for a few AAA game makers like Capcom in Japan, and for Chinese developers making gacha games.