PS5 probably did it the most injustice out of everything. My friend who's in Japan basically implied that PS5, and even PS4 had very little presence in the biggest electronics stores he could find. They'd have like 5 displays, the Switch and PC had like 20+ each.
They'll still have their US/Europe audience because these ppl are like crazed fans, and a lot of dev teams from Sony moved overseas. But that also means they'll start to lose big jp centric devs. They'll lose all the indies in PS5 and a lot of 3rd party devs like Capcom, Squeenix, Bamco, etc.
FF7 being this insane reputation game selling like an indie RPG on the Switch is probably gonna be a huge red flag to a lot of future projects
"Iwata was awesome" - Mr. Nintendo
https://i.imgur.com/krtFHol.jpg