A couple of question about your posy
But aren't Nintendo also focusing on a worldwide audience? Why does targeting the West have to mean not targeting Japan?
What is it about Nintendo's ahrdware that makes it pleaisng to Japan and Sony's not?
Sony have worked to get exlcusive games from several Japanese publishers inclduing Square Enix, Konami and Koei Tecmo. What other specific actions are you wanting to see Sony take?
Yes they are, and honestly not focusing on the world opossed to one region is a stupid idea. Look at Sony: PS4 was a raging success, and the PS5 is poised to be even more so. But just because the worldwide audience should be the focus, it doesn't mean that you have to ignore certain regions individually. Ghost of Tsushima did well in Japan because it was a VERY japanese themed game. So it obviously resonated with them. But it didn't blow up because it was largely designed with a structure that western audiences like the most. In any industry, for big companies like that, the safest thing you could do is diversify. God of War, Uncharted, The Last of Us, Gran Turismo, etc are all very successful franchises, but obviously ones that don't resonate that much in the japanese market, a place that Sony is clearly lacking. So why not focus its resources on a genre that is successful and popular there, but it's also successful and popular elsewhere? Like a JRPG for example? Its a giant hole in Sony's catalogue that I don't understand why Sony never filled to this day(Talking first party). And there is a very easy IP that could be candidate for it: The Legend of Dragoon. People seem really fond of it, a revival could work.WITH a proper budget and talent.
To sum it up: Why not make a game in a genre focused to appease a japanese audience, but that it also has a (strong) foothold outside of it, like JRPG? Nintendo does that ( Metroid Prime is something CLEARLY made for the west, but then you have games like Splatoon which is unapologetic japanese), and while some games clearly find way more success in certain regions, it diversify Nintendo's catalogue and the number of places in the world that Nintendo has a strong hold.
About Nintendo hardware: Flexibility and novelty. What makes the Switch so appealing is not that it's also a portable, but because it's a hybrid. Or rather, that it is flexible and better fits on someone's life, especially nowadays that people are out and work so much. Making it more of a better proposition for the modern human, not just for the japanese mind you. Has to go out and stay a lot of time on the subway? Take along your Switch with you and play simpler games. Has a lot of time at home and want to play AAA games? Dock work Switch and play on the TV. Don't get me wrong, software is still king and will always be, but that is also important. And the PS5, desgin wise, has been about the same since the PS2. There is nothing exciting about it. And people has less time to stay exclusively at home.
The third question: But those companies didn;t really make them exclusive to PS, did they? Most of them end up being just timed exclusive, and people can end up getting elsewhere. I've heard that PC gaming is getting more popular in Japan, though I don't know to what extent. So they are not really first party, and thus people don't really tend to associate them(to a full extent) to PS. Plus, and this is the biggest issue here, most of those "exclusive" games suffer from the same problem as the first party games: they tend to aim at an worldwide audience, so they tend to have less stuff that japanese are excited inside them. And so the cycle continues.
What actions I recommend? Short to mid term, none. Sony's situation has gotten so bad after more than a decade backing out of Japan, with Nintendo's hold on Japan getting to a monopoly level with the Switch, that there is nothing they can realistically do, outside of pulling a Minecraft-lie or a Splatoon-like miracle, to revert this. The power difference between Nintendo and Sony is becomming irrelevant, and it will be more so with the Switch 2, so that advantage that Sony had is going down the drain, as there will be next to zero reasons as to not port your PS5 games to the Switch 2(especially if you want to have a shot at selling in Japan). Long term? Pull a Nintendo. Start diversifying your catalogue, making games, with the right budget and talents, on genres that are really popular on Japan, but also have a considerable/strong following on the west, like JRPGs, and hope that gains traction over the years.