Nintendo is not a competitor to Sony, despite how weird that sounds. They don't overlap anywhere in terms of demographics and game design. Switch's main forte is portability just like with many previous Nintendo handhelds that solidified that image. That's why Vita never took off, that space and mind share is firmly in Nintendo's hands.
Nintendo is in its own category. They recycle same franchises for thirty years that have widespread recognition but don't push this medium forward in terms of audiovisual and gameplay mechanics system. They're closer to Lego than to Sony Interactive Entertainment or Xbox game division.
But if you're Sony, it can be demoralizing (IDK how could it be not) to see someone with so little effort, minimal workforce and just lazy work outsell you so much when you poured heart and soul working 12 hours a day for years to create something like Uncharted 4, Spiderman, GoW or TLOU 2.