They are only doing well for their publishers because none of those are expected to be AAA games. FF outsells all of those and is making a loss for S-E now.
As far as AAA goes, it is a dying market for sure.
Japan as a market is more leaning to mobile and switch. playsation 5s in japan are still seen as Luxury Items over there and are still quite expensive and the stock situation for ps5s only got better around xvis release.
I fully expect playstation, switch 2 and mobile the focus in japan. Xbox in japan lets be honest post hifi rush closure.
the next few years are going to be interesting in the console market-
playstation is doing well but alot of their projects are in first or second year of dev at best
switch 2 soon - will it be another switch or another wii u
xbox - will the current team even be around by the time the next console is around i.e phil sarah bond etc.//- xbox to me is the most uncertain, if i was obsidain or hellblade devs id be might worried, the only studios safe there was ppl working on elder scrolls 6, the next fallout and playground games. Microsoft itself is now looking to look at xbox under the magnifying glass.
Alot of studios made a stupid assumption in thinking covid time sales would continue with people buying stuff as being stuck inside and it would continue and it just didnt.. but they hired and created and spent money based on that fact.