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Maybe now when Ni no Kuni Remastered and Yo-Kai Watch 4 are also coming to the Switch that are a better comparison/competition that shows what you can do with the Switch to people that only ever played Pokémon. Provided Bandai Namco makes sure to advertise these games like crazy.
Also SMTV is coming. And maybe Dragon Quest Monsters will get a game on the Switch, too.
On handhelds the competition is not so significant, but it's a big deal now with the Switch since now not only handheld players, but home console players also playing a mainline Pokémon game after a long while.
The sales will not drop, in fact they will increase. But that also means after Sword/Shield Game Freak can not do the same lazy shit when people have played so many other monster collector games with overall better visuals and environments as well.