Seems like the people who care about framerate and performance are starting to show in sales as all their more 'hardcore' games haven't seen the same explosive sales as their more casual fair and evergreens. Games like Animal Crossing, Mario Kart, Mario Party etc. continue to sell like crazy while stufff like Xenoblade Chronicles 3, Bayonetta 3, Metroid Dread, while performing better haven't been much better than the games before.
The demo those big action oriented games are marketed to aren't showing up for them because the hardware sucks. Games that people like to play on their TV's.
All the more 'mature' games aimed at 'core' gamers are pretty much destined to sell 1-2.5 million copies, while 'Luigi's Left Shoe' will do like 8 million. If Nintendo wants to expand their own market they need to update their hardware to accommodate 3rd party developers.