The same is true of PlayStation and Xbox too (and has been for a decade or more). At least in US, don't know about Europe. This is not to defend Nintendo, just saying that if that was the issue, it would effect all the consoles, and would have been effecting them for last many years. Average people don't even know about these, and many probably don't even care.

There might be more to this, but with the current economy, and consoles getting more expensive instead of cheaper as time goes on could be some of the reasons, IMO. And there weren't much holiday sales this year.

First year sales are also generally limited by supply, not demand, so it will be interesting to see how Switch 2 does in its second and third years, specially if we do get next PS and Xbox next year.