Both are gonna sell over 20 million that's quite the feat for both of them and more than anyone expected. A single entry in the Pokemon series hasn't sold that well since Gold/Silver and Animal Crossing New Horizons is on track to sell double its previous game's sales.

Pretty much this. Both games are successful sales-wise. Everyone at Nintendo are likely more than pleased with the results.

I'd argue expectations for Pokémon were higher than the result we got before the big controversy. After the controversy people went all the way in the other direction and lowered expectations too much making it look like Pokémon exceeded expectations. But if you would have told people 2 years ago that the first console Pokemon would sell in the same range as Gold and Silver no one would have been surprised. Animal Crossing is a whole different beast though. 

It's looking likely the next Pokemon won't be til late 2021, and with the expansions this year, Sword/Shield may have better legs than a typical series entry.
AC however won't be replaced til Switch 2, so with the faster start both acceleration and top speed may be in it's court.

Until Nintendo announced their financial results for Q1 2020, I was inclined to think that Pokémon Sword/Shield (which had excellent sales in its first 6 weeks, and is on track to be the 3rd best seller in the franchise, behind only Red/Green/Blue and Gold/Silver) would sell more than the new Animal Crossing. However, AC is selling incredibly well, especially in Japan, and because it is a franchise that has longer legs than those of Pokémon (even because it only usually has one game per console, while the "pocket monsters" change generation every 3 or 4 years, which yields at least 2 generations for each hardware), I guess that AC: New Horizons will outsell Sword/Shield in the next months.

Seems like Animal Crossing easily defeated Pokemon and any other exclusives this gen.

HAHAHAHA

Owned.