Japan is not the premier gaming market and hasn't been for a long time. Even Japanese companies are focused on the western market. Nintendo might beat Sony in Japan but who is the largest company in gaming and which one isn't?Japan leans toward mobile gaming, it still makes sense for them to value delivering that product knowing that no other company can even remotely compete with them over wasting money also developing a home console that can only do that.
Why continue splitting console sales with PlayStation and Microsoft when you have the entire mobile lane to yourself and you're based in a place where mobile gaming stands above everything else? Better off spending that extra money on pushing your switch developments
Also
Nintendo has now trumped Sony for 20 years in Japan | VGC
^^^^^^^^
Nintendo is SIGNIFICANTLY bigger than PlayStation in japan, where they are based at, you may be glossing over their own bias towards who is running shyt at home vs. how you feel about them in the US
They aren't pressed about anything PlayStation is doing and never were
Nintendo isn't pressed about Sony because they pretty much avoid directly competing with them and haven't really done so since the Gamecube. Nintendo came to the conclusion they couldn't out Playstation Playstation a long time ago after Playstation took market leader status from them.




