I live in China, and all the PS5 that are always advertised on 淘宝，拼多多，激动 etc are 90% from Japan. So I do know a lot of the PS5 bought here are from Japan

I admit  the way japanese studios still giving sub-par treatment for Switch make me REALLY concerned with the state of japanese market. If they continue following Sony blindingly and PS5 keep tanking in game sales many of those studios won't last very long which overall will diminish japanese gaming output except the big studios that can sell very well outside Japan (Capcom, Square, Bandai Namco, etc) 

There's still time for them to wise up; we've already seen some companies pivot in their support of Switch, and others should follow as it becomes more and more impossible to ignore which way the wind is blowing in Japan.

I get some of their concern however. Switch is far underpowered when compared to other platforms, many of them want their games to be competitive with western games to sell well on PCs and whatnot. 

In big scope, Switch domination in Japan will further deep the already immense distance between big Japanese studios and mid sized Japanese studios. Only the big ones will remain competitive in western space, which was something that always happened but was changing last generation with more and more Japanese games getting traction outside Japan. 

Perhaps Monster Hunter Rise PC port sales will be my ultimate measurement to know if there is any hope for Japanese developers to make any breaktrough while still prioritizing Switch. If it sells fine, then I can see Switch-designed japanese games can still having market in West, if not then I must JP market and Western markets will evolve to be completely different from now on, except by Nintendo first and second party games 

Ghost of tsushima released this week. so no 3rd full sweep this week.

Japanese studios can support the Switch while still selling outside Japan. The West loves the Switch as well and the Nintendo crowd tend to like Japanese fare more so than say, the Xbox base.

Rise has done extremely well not just in Japan but worldwide, while success has also been found by the likes of Octopath Traveler and Sakuna.

I get some of their concern however. Switch is far underpowered when compared to other platforms, many of them want their games to be competitive with western games to sell well on PCs and whatnot. 

In big scope, Switch domination in Japan will further deep the already immense distance between big Japanese studios and mid sized Japanese studios. Only the big ones will remain competitive in western space, which was something that always happened but was changing last generation with more and more Japanese games getting traction outside Japan. 

Perhaps Monster Hunter Rise PC port sales will be my ultimate measurement to know if there is any hope for Japanese developers to make any breaktrough while still prioritizing Switch. If it sells fine, then I can see Switch-designed japanese games can still having market in West, if not then I must JP market and Western markets will evolve to be completely different from now on, except by Nintendo first and second party games 

I'm pretty sure the opposite will be true.  The small and mid-sided games have trouble getting discovered, because they don't have the budgets of the big games.  Therefore they get overshadowed on Playstation where budget size matters a whole lot.  On the Switch the small to mid budget games don't compete directly with the big budget third party games.  RPGs on the Switch don't compete with the latest Final Fantasy and horror games don't compete with the latest Resident Evil.  This means that if a "smaller" budget game has exceptional gameplay then it will have an easier time getting discovered on the Switch.

No one knew who From Software was until Sony gave them a chance with Demon's Souls.  The next type of From Software-like phenomenon will be on the Switch though.  Sony isn't looking for this kind of studio from Japan anymore.  A small to mid-sized Japanese studio that gets surprise success will be on the Switch.

Switch's dominance in Japan actually gives the smaller studios a chance to shine and get discovered.

The official PS5 launch in China happened in May, but the weekly shipments to the country are too low to fulfill demand.

I doubt that Sony is oblivious to the situation in Japan where hardware is being sold, but hardly any software goes with it. Yet they continue to ship a number of PS5 units to Japan that notably exceeds demand. The physical tie ratio for the PS5 in Japan is ~0.4 while digital sales account for 50% of all software sales at best (the actual figure is most likely lower); so the best case scenario after nine months is that the PS5 has a tie ratio of ~0.8 in Japan. But even the routinely slow-starting PS software in Japan should have reached a tie ratio of about 1.5 by now. So what's going on? Likely around half of the PS5 hardware units that have been sold in Japan so far have left the country afterwards to be sold/used elsewhere. There's no better explanation for these Japanese hardware and software sales that don't match.

I assume that Sony knows what's going on, but doesn't adjust allocations in order to boost their standing in Japan. A lot of notable third party publishers are located in Japan, so having somewhat good PS5 hardware sales is important to foster development support. Based on PS5 software sales, hardware shipments of ~5k per week would have been sufficient a long time ago. The PS4 had many sub-10k weeks in its first year and that was with better software sales, so a weekly baseline of ~5k for the PS5 is far from unthinkable.