You may be misinterpreting what I am saying, so let me try to say it again.  I mostly want to figure out what is the most popular platform right now.  It's the PS4.  I am not looking at lifetime software results.  I am just talking about right now, or more accurately, the past fiscal year. 

But if you look in terms of install base, PS4 has twice the install base of Switch, but didn't sell twice the software during the past fiscal year.  Not all of those PS4 owners are actively buying software.  PS4 has about 110m potential owners to buy software, while Switch only has about 55m potential owners.  If all owners were equally engaged, then PS4 would sell about twice the software of the Switch just in the past fiscal year.  That is why I am comparing annual software sales to total hardware sales.  Even people who bought a PS4 in 2013 can still buy games.  But the double install base is not resulting in double software sales.  The average PS4 gamer is not currently engaged like the average Switch user is currently engaged. 

My conclusion is that some, a minority, of PS4 users are tired of their PS4.  They either moved onto the Switch or they simply stopped playing games.  

 244.9m games sold during the past fiscal year.  That is the number I find most interesting.  I mean, on this site we focus more on hardware, but hardware is a simple number that is easier to track.  It's a good benchmark.  But software is really what is important.  Software is important to gamers, and software is where a company makes it's profits.

On Nintendo's recent financial report they sold 168.7m software units.  That tells me that PS4 is still the most popular system in the world right now.  Eventually people move on to another system, but most PS4 players have not moved on yet.  Given, PS4 has about twice the install base of Switch and it is not selling anywhere near twice the software.  Some have moved on to the Switch or at least gotten tired of their PS4 for a while.  But still, the bottom line is that PS4 is still the most popular platform in the world right now.  It's still selling the most games even if hardware sales have died down.

 244.9m games sold during the past fiscal year.  That is the number I find most interesting.  I mean, on this site we focus more on hardware, but hardware is a simple number that is easier to track.  It's a good benchmark.  But software is really what is important.  Software is important to gamers, and software is where a company makes it's profits.

On Nintendo's recent financial report they sold 168.7m software units.  That tells me that PS4 is still the most popular system in the world right now.  Eventually people move on to another system, but most PS4 players have not moved on yet.  Given, PS4 has about twice the install base of Switch and it is not selling anywhere near twice the software.  Some have moved on to the Switch or at least gotten tired of their PS4 for a while.  But still, the bottom line is that PS4 is still the most popular platform in the world right now.  It's still selling the most games even if hardware sales have died down.

Curious. Do these numbers include digital only games? I was under the impression one or both of Nintendo and Sony dont include those in their numbers.

IIRC, PS4 numbers do not include digital only games.  On Nintendo's website under unit sales I found this footnote: "Software sales units for each platform are those of card or disk software (packaged and downloadable versions)."  
https://www.nintendo.co.jp/ir/en/finance/hard_soft/number.html

It doesn't look like either total includes downloadable only games.  It's an apples to apples comparison.

I think they probably could get to 150 million, but they just don't want it.

I mean they could cut the price to $199.99 and then further in the future to say $159.99 ... but the consumer that buys at that price doesn't pay a lot for games and I think there's not much incentive for Sony to lose that much in unit profit per unit just to get more sales from the type of people that don't buy a lot of new software.

These are not the types of people that are going to spend hundreds of dollars for Sony on PSN, they are the types of people that want dirt cheap software and $19.99 bargain clearance games from Best Buy and maybe the yearly single COD or FIFA. 

Doing the math it probably makes them more money to keep the fatter $100+ profit margin they likely enjoy on the PS4 even if it only sells 15-20 million more units rather than cut that margin substantially just to hit 140, 150 million.