The whole narrative that Japan has left consoles behind because they're so obsessed with mobile is just a narrative pushed by salty Sonyfags (like you) who don't want to admit that the japanese are just tired of Playstation in particular.
The fucking Wii U was outselling Playstation on launch. Now imagine if the WiiU was actually a good system, it could have sold noticeably much better. Even if the Switch wasn't an handheld, it would have been still a success in Japan. Would it have sold less? Certainly so, but it would have been a good success anyway. Probably not breaking all records like the actual Switch is doing right now but probably around the Famicom (NES / SNES) numbers at least. The PS4 still managed to outsell the Vita in Japan (the sole country that truly gave a shit about the Vita) in spite of not being a handheld either, again disproving your fanfiction.
You can't blame casuals or mobile/handhelds whenever a competitor outperforms Playstation. If Sony managed to pull another PS1 or PS2 then Playstation would instantly make into the top sales charts again in spite of it not being handheld. The thing is that the Playstation no longer has that kind of appeal or provided anything even close to what it did. The PS3 has been the closest thing since it had at least a small portion of the library that were varied AA stuff like the PS1 and PS2 had in abundance. But the PS4 was poorer in comparison and
the PS5 was already confirmed by the suits in SIE to have nothing but AAA releases with retarded hollywoodian budgets.
Meanwhile the Switch does have a big catalog of AA stuff the japanese crave for. And coincidentally, it's also the kind of game content that is topping the game software charts.
And yes, a multitude of those recent screw-ups within the PS brand is going to have an impact as a whole and in the long run, no matter how much you try to personally deny them out of fanboyism.
The Switch is region-free.