The Nintendo Switch dominated Japan this week selling nearly 180k systems. The PS5 sold about 43k way down from last week. The Xbox Series X/S held decently sold over 4k beating both PS4 systems.
The top-selling game Momotaro Dentetsu was no1 with 345k copies sold. Hyrule Warriors: AoC sold 173k copies and in 3rd is Animal Crossing with 37k, helping it pass 6 million physical copies in Japan, alone. There were no PS5 games in the top 10. One PS4 game with COD at no6, but the rest were Switch games. This is not a good sign for the PS5 games in Japan.

Is Sony in trouble in Japan? If so, this will affect their standings with companies like Capcom and Square/Enix? More Japanese companies are making the Switch (get it)? To the Nintendo Switch.
With Square Enix losing money on the Avenger game, I wonder how long the PS5 will be their top priority? With monster exclusives for the Switch like Bravely Default 2, the 2 Monster Hunter games, and SMT5 being exclusive to the Switch, 3rd Parties may not need the PS5 for their sales.
Source: Nintendo Everything