Keep market dominance, having actual good sales, the weaker yen value meaning they can't simply do the same thing Sony did with the PS5 with a USD -> Yen conversion.

That point was already debated to hell n back. 

Because Japan is a very important market for them, and a higher price for Switch 2 would dramatically cut down their sales potential there enormously. Its not that they would have lost those consumers to PS5, they would just not buy a new console. Europe is not a pricing issue, its a software issue. The software that dominates in Europe is unlikely to ever be ported over to Switch 2, which means the only thing that would happen if they had a lower price in Europe is that sales would still be mediocre compared to PS5, but they lose profit margins by selling it at a worse price for them.

Look at a sales charts of the best selling titles in Europe and basically none of those games are available on the Switch 2, that reality doesn't change by price adjustments. Without appealing software the console is not appealing either.

So the reason why Nintendo made price adjustments in Japan is that pricing would be an issue in Japan, their software is very popular in Japan and thus the price was the only factor that could prevent Switch 2 from selling big numbers in the long term there, in Europe the problem is software related, and that cannot be solved in either the short or long term no matter the price.

Although, I understand what @Sephiran is going for here. Historically wise, the sales results here to me looks only like a repeat of what Switch 1 went through its first holiday season in Europe in 2017

A hugely discounted PS4 in a continent that favors football and PS4 hugely instar of the Switch ? This isn't too different here so I don't understand the alarm bell going here.

Overall, Europe needs only selling approx. around what Japan does or slightly higher to get a similar result to what the Switch did which in turn leads me to say there isn't anything to worry.
In turn, the Switch major win last generation was actually in the rest of the world market where their previous consoles barely could register there. Which considering the big launch in China and other Asian territories is definitely picking "the slack" here.

They could've priced the Switch 2 at least 25% higher and remained absolutely dominant and sold out left right and centre for a year or so.

It wouldn't surprise me if it gets a price hike soon.

Why would they sabotage their Japanese sales when Nintendo are set to decline in Europe? It means they need Japanese sales more than ever to reach a big install base of Switch 2. Their weakness in Europe means the Japanese market will become ever more important for them. Basically they will be the opposite of Sony in that regard. GTA 6 will create a bloodbath for Switch 2 sales in Europe next year, while in Japan they will have Pokemon gen 10 doing enormous numbers for them if they build a big install base for Switch 2 there.

The Gabe Cube feels dead in the water now with the explosive rise in RAM prices. So if you were waiting for that, or looking to build a gaming PC next year, getting a BF deal on a PS5 now also seems a better bet. Of course Steam will still be cheaper for gaming in the long run, but plenty people with ageing gaming systems might think PS5 a good alternative now.

And indeed, the mindset of wait for cheaper slim systems later in the lifespan has turned into better buy now before prices increase further. The aggressive BF prices from Sony are hitting a home run. I wouldn't be surprised it's drawing a lot of PS4 holdouts over the line. The more casual group waiting for cheaper slim systems are realizing it's not going to happen anymore. I still remember the $99 PS2 Slim near the end of its lifespan, ouch.

You underestimate Nintendo's dominance in Japan, and overestimate their "inherent" weakness in Europe. A more expensive Switch 2 would have still sold out for a while in Japan. I wouldn't consider a pricecut until shipments comfortably beat demand.

In Europe, the demand is low enough to benefit more from a lower pricetag. To maximize short/medium term sales, it needed to be cheaper in Europe, and more expensive in Japan to offset the losses.

The reality of what is happening with Nintendo and Europe is very similar to what Sony previously went through in Japan, a slow decline in interest which led Sony to prioritize other markets, this is the exact same situation for Nintendo in Europe. The main reason why Nintendo is now focusing on Asian expansion is that they know that Europe is a declining market for them and they need a bigger foothold in the growing Asian markets to somewhat replace the European market. Early shipment numbers from ''other regions'' sales of Switch 2 show that those sales are already very competitive with European sales for the Switch 2, so it seems Nintendo will be fairly succesful in pivoting to other markets.

We see this clearly from Nintendo's last earnings report; They reported 2,4M Switch 2 sales in Europe vs 1,93M Switch 2 sales in other regions (outside Japan, Europe and North America), it has never happened previously that other regions are so close to European sales. Which shows that the pivot really is happening for Nintendo. The reality is that Nintendo these days sell more Switch 2 consoles in Korea than they do in a lot of European countries, and China is probably a bigger market for them than UK already as well.

Yeah, if Switch 2 sales here mirror what the original did it follows the normal pattern.  First, Europe is Nintendo's weakest market and second, historically, a new system has always been bested in its first year by whatever the current top-dog console is. So really no surprise here, especially when you consider the PS5's discounts in the region.

More interesting is that Switch 2 has been bucking this historic trend from a global standpoint thanks to NA and Japan, which will result in the Switch 2's first 12 months of shipments beating every fiscal year of the PS5 and possibly even its peak calendar year of 22.7m.