The obvious answer is that they are but not as much as between Playstation and Xbox and Playstation and PC. Though with the way things are going the Switch 2 will probably compete more with Playstation than Xbox due to the latter heavily fading in relevance so going forward Playstation's biggest competition will be PC. The situation is different in Japan though due to how insanely dominant Nintendo is there so Nintendo has been Playstation's biggest competition the entire time.

I see that now , had to re-read his second part of the post.

That part was a bit funny though I'd admit lol.

Why not Microsoft and Nintendo? MS still sells consoles. If they quit, it will be Sony vs Nintendo all the way. Like i said we need to see th whole picture not only a part: Right now, Sony just had its peak, of course selling more systems than an 8 years old handheld thats about to be replaced. I would be shocked if it was the other way around!! Nobody ever doubted that fact! But when all is said and done, the Switch will remein superior in total sales!! Switch peaked at 28 million, the PS5 at barly over 20 million and that came with heavy discounts! The Switch never had an official price drop and is about to enter DS/PS2 airspace. Imagine what happened with a price cut?! 155 million will be the absolute floor for the Switch but only if Nintendo killed it before the end of 2025 wich won't happen! Downplaying these facts is only denying the fact that the PS5 is chanceless to get to these LTD numbers and to me must come from buthurt fanboys who cannot get over the fact that the Switch did not only surpassed the PS4 (gen 8) but will be also likley be above PS5 (gen 9) when all is said and done! 

Then why have Microsoft been allowing Microsoft owned IPs on Switch?

As a rule of thumb, they are competing when Sony is winning, but they aren't competing when Sony is losing.

I see the point. Microsoft is starting to not be a direct competitor anymore, and is more like Apple, Valve, and others.

Microsoft created the Xbox at a time when consoles seemed like they could be a threat to Windows, potentially becoming people’s "all-in-one media box" and a way to bring the internet into homes, while also controlling the booming gaming market. Today, Microsoft faces much more competition from companies like Valve, Apple, Samsung, Disney, Netflix, and others.

We’ve also seen that Microsoft is becoming much more friendly toward Nintendo. There are leaks suggesting that Microsoft is the biggest third-party supporter for the Switch 2. I can see that happening.

If any of the companies Microsoft is competing with, or even Microsoft itself, were to get Nintendo’s "gold" on their service, it could make a huge impact.

As for the topic, Sony  wishes they weren’t

The part where you ironically describe the people who are against the fact that Nintendo is competitive in the gaming scenario? That's was funny indeed

Yeah, well moreso the fighting planes comparison. Didnt click until you mentioned it.

The 1073th attempent to show off that PS5 specs are stronger than Switch, when nobody asked for it? Like... hardly comical... Yeah... we already get that. Is there anything else they can bring to ridiculize Nintendo Switch? 

I've made the point on this forum before that they definetly are not. Sony and Xbox are not in competition with Nintendo. Nintendo is playing it's own game. Sony have more to worry about keeping that the status quo by maintaining peoples desire for AAA gaming and they are failing at that and third party publishers are doing all in their power to push people away from AAA games to push them to Nintendo in that way and this is where Nintendo becomes the issue for them, there is no direct competition only a failure on Sony and Xboxs part (and the industry as a whole) to maintain and keep their customers happy. They, Sony mean, have also said that they see no issue of people migrating to PC which I think is very naive especially when Sony now have their ecosystem on PC, I find this an awful mistake that is going to hurt them drastically down the line if they continue to fail and the AAA industry doesn't get its shit in order.