Two identical game consoles geared fully towards western audiences. Even more than the original Xbox was. Absolutely no compelling Japanese software in the launch, except a very hardcore-then-niche port of a PS3 game, which has a cult following among hardcore gamers, but no mainstream interest.
While Switch offers everything the Japanese gamers need; portability and no need for a television. Full of software that the Japanese love. Nintendo makes software that compels to everyone, not just the Japanese.
The Japanese youth have grown up with mobile devices. To them, some households might not even have a television. Game consoles are a thing of the past. If it doesn't fit the lifestyle, it doesn't work in Japan. This is why Sony moved their business to America. Consoles are gigantic in the west, while dying out in the east. Of course the initial allocations were instantly sold out, but the PS5 and XSES/X will sell way less in Japan than their predecessors, which already showing a dying market for television-based consoles.
Most of the hardcore gamers still see Japan of 1985-2005 when the output was stellar. That age has long gone. Only a few large corporations still do games for consoles, when smaller ones have gone mobile. The largest ones like Capcom and Square Enix still do AAA games, but very western output. All A-B level games are Switch/Mobile with a port for PS4/PS5. That's how this generation will roll.