Those same games are limited and niche in Japan as well.  The biggest games coming out of Japan tend to be the biggest games in the west or are trending that way.  The smallest games in Japan isn't on anyone's radar, even the Japanese.  The whole notion that a subset of developers need to continue with a Japan only model is silly (and not even in droves happening anymore).  Its just a line that people use to extend Nintendo's dominance in Japan when in actuality a Japan only strategy is becoming irreverent. 

Well any worldwide video will have inconvenient time for a part of the public, they will try to have a timeframe that is mostly comfortable to the majority of their market base.

Anyway 5a.m. is quite ok, before covid I was waking up 5h30 to gym so 30 min earlier would be no problem. 2am would be much worse for me.

3 months, besides holiday sales period is more relevant in west than Japan plus they were sold out for the whole period so releasing in Japan at the same time would have made output even worse matched with demand.

The Japanese eShop proves you wrong as the are many who are still Japan only they're the Japanese equivalent to indies as their business model is tailored to sales of this level and every once in a while a title may emerge that has better than niche sales, the reason it might seem to you that it isn'tviable is because you're thinking in the western mindset of big budget to push bells and whistles.

Yet Japanese devs are still jot porting or releasing their games on the Switch..... And the fans wonder why their series is dying...

I dont think Switch sale can prove anything since Japanese are heavily handheld focused, just check out the top 3 hardware of all time in that region, they are all undoubtedly handheld console, I've always seen handheld consoles different to traditional home consoles, and for Switch I bet 90% of ppl buying it for use on go, with that in mind, and Xbox always being irrelevant in Japan, we can see an obvious decline on sales of PlayStation consoles generation by generation in there, PS2 used to perform extremely strong in the region, followed by og PlayStation which seems fair, but that's 2 decades ago if you recall, then PSP, again handheld, then PS3 with just above 10 million units sold, and in this gen, PS4 cannot even sell more than 10 million even the total shipments wordwide topped 110+ million, that's the situation of home console in Japan. I don't know you guys, but if I were SONY, why would I bother prioritizing in such a market like this?

But a Japanese studio, or any other studio for that matter, can't survive on just these big games that may or may not fail. Hence you need all kinds of smaller titles to edge it out. And, of course, so it goes for people who opt for a platform for that big title, but want to play something else once they are done (and inbetween titles). So this notion falls flat. Japan is important, smaller Japanese studios are important, Japanese audiences are important. It is not just that, it is also a design and development philosophy that's unique and valuable. It is without a doubt a benefit to everyone that they succeed.

So don't hope for an Omega Boost remake right? No JRPGs to be shown. Guess I won't like this reveal much as I don't care for souls and the typical AAA Sony stuff with few exceptions. (be down for Spidey 2) Tho I'd love to see some Housemarque twin-stick shooters again. Even a sequel to Nex Machina or Resogun.

First, I don't think SONY will again make a handheld after the failure of Vita, I don't have the source but I remember there's some statement from SONY before saying the same, the failure of Vita is largely caused by the trend of mobile gaming right then in early 2010s, I think SONY quit the market of handheld and then turned to invest on mobile games instead, the successful FGO by SONY music segement is a good example, and that made SONY a bunch of money, so I think the odd SONY release a handheld or hybrid is very low(even though I would definitely welcome if they do it). For the approach you mentioned, I don't think SONY quit the market in Japan, it's still one of the most important market for SONY even with the declined performance in hardware sale, just no more reason to prioritize on it, that makes sense right?

I agree with all your points and even if I wouldn't buy the device a PS5 portable version (use scalability to have a 720p30fps version with lower IQ, with a lot cheaper ssd solution and API) but certainly could have some market since you can have it either full digital or sell games on sd cards to install. Even a hybrid could be possible, but both are very unlikely since Sony haven't even hinted at being interested on portable market anymore.

Still that don't deny that the japanese market for table consoles have shrinked considerably gen after gen.