Since Wii and Switch have done so well globally, Sony fans typically try to ignore Wii and Switch. But they sure enjoyed it when PS1 and PS2 dominated every region of the world - including Japan.
Compare console sales of Nintendo and Sony systems since PS1 launched. It's like day and night from the first few gens to recent gens. It's not like there's any third company like Sega or MS that ate into their sales over the decades to make a noticeable difference. It's a two company console market in Japan, where one totally dominates now.
But it makes sense.
Japanese gamers like Japanese kinds of games. Sony and most big third parties skew their games to western style tastes which is gritty graphics, ultra realistic pro league sports and stats, shooters (including BR) and it seems almost every game has competitive MP modes. These markets have bigger sales potential. It's as easy as that. Aside from Nintendo games which have global appeal, RE, Gran Turismo and maybe some western gamers liking FF and DQ, the tastes in games are a 180. Of course Sony systems arent going to sell if Sony focuses on games like Last of Us, God of War and Uncharted. Even their samurai games wasnt even made by a Japanese studio. Made by a bunch of people at Sucker Punch in Washington State.
It's not even a console vs mobile thing because there's been consoles and mobile systems selling concurrently since Gameboy. Console sales did fine for decades. If pure console systems like PS systems now do lousy, it shows it's a game library issue. Consoles still sell fine elsewhere in the world.