This video seems to explain why SwSh was such a lazy entry. Bottom line of the video is that the game sales are less than 30% of the revenue of pokemon. Most the sales are from toys and merchandise which seems to check out.
Just consider any local Gamestop near you. If you walk in there you will see a whole section of Pokemon plushes, toys, etc. Those things likely costs pennies to make but are retailing for $20 each or more. The games are just the vehicle to introduce new toys and plushes for you to buy. Even when Pokemon did that Buildabear partnership last year, those Pokemon you could buy were more expensive than anything else Buildabear sells.
Pokemon won't change their ways until the toy sales dry up and they actually have to capitalize on the game's revenue itself.
Edit: random articles about Pokemon toy sales:
The Pokémon Company announced their 2015 retail revenue results for brand licensing through License Global!, which reveals that the company has achieved $2.1 billion in retail revenue in 2015.
www.siliconera.com
Pokemon made 2.1 billion dollars in "retail" revenue in 2015 ( to give some context to the other years increases after this and put a floor on their retail revenue figures).
Pokemon as a brand ranked #29 in company retail revenue with Disney being #1 in that category.
Juli Lennett, senior VP and U.S. toys industry analyst at the NPD Group ponders the future of the toy industry as it continues to show steady growth.
www.npd.com
Pokemon was the top growth item in 2016 toy sales.
The property saw 285% boost in sales throughout the year, says new NPD data....
www.licensingsource.net
They saw a 285% increase in sales in 2016.
On par with the world’s collective performance, toy sales in the United States, the world’s largest toy market, grew by 1 percent to $20.7 billion in 2017
www.npd.com
Pokemon caused the growth of the entire toy Market in 2017 by a percentage point off the back of Pokemon Go alone and boosted the market for 8 months.
pokemon.gamespress.com
Pokemon saw sales increases in markets like italy,Tcg sales went up 644%. Pokémon toys went up 146% in Italy. Fairly big increases.
Pokemon Sword and Shield just recently launched on Switch, and although many are lamenting the loss of some of their favorite creatures, a lot of them are celebrating the arrival of new ones. Eldegoss is one of my new favorites, Yampe...
www.destructoid.com
Sword and Shield toys are about to hit the market like a truck and I'd be willing to bet record breaking sales for Christmas this year. They seemed to have missed the black Friday window but I doubt that will slow the sales.