Sony losing launch exclusives has killed the ps5 stone dead. They lose a ton of market value because PC get it day one. Steam is doing gangbusters and shows no sign of stopping in fact only growth because jilted console players will get PCs.
The positioning of the PS5 has become complicated now that the Switch exists. If you're a casual gamer who doesn't really care about fidelity or performance, you just buy a Switch. All the dope Nintendo games are on there anyway.
If you're an enthusiast who cares about graphics and are willing to fiddle with things, you spend a few hundred extra dollars and get a PC that completely destroys the PS5 Pro.
The PS5 specifically exists for a niche of people that don't make sense - the enthusiast that cares about graphics but maybe not as much as a PC gamer, and for people who mostly want a casual non-fiddly experience but are willing to fiddle a little bit (modern playstation has way too much fiddling).
With no exclusives, the PS playerbase is getting poached on both ends until you end up with just two camps stuck on playstation: 1) autismos that need the exact experience that Playstation is peddling and won't budge to acclimate to a different system, and 2) spastic brown manchildren who worship Sony because they didn't have fathers and are physically incapable of tweeting without some niggerlicious emoji spam.
During the PS1/2 their consoles were sold more on 3rd party software than 1st party, so the weak 1st party line up isn't helping, but it isn't the death call.
What Playstation was offering in that period was hardware that was different enough from conventional PC hardware and at a much lower price. There were things the PS2 could do that PCs weren't able to perfectly replicate until the mid-00s when rendering pipelines became more-or-less fully programmable. There's nothing a PS4 or PS5 does that a modern PC can't do better, and the advantage of PC is that it scales to what you have:
Only care about AA budget JRPG releases that also run on the PS4 or esports slop? You can build a PC to play jarpigs/esports/gacha/FIFA slop for like $300, you don't need a PS5 for that.
Care about AAA but don't really care about hitting 4K60? You can throw together a cheap AM4 system with a 6750 XT for like $450 nowadays, it'll play every modern release at 1080p no problem.
And of course - if you want to spend money to get more perf, you don't have to wait for Sony to give you permission to do it. You can just go drop a mortgage payment on a 4080 or 4090 today.
The "midrange console" experience just doesn't really make sense anymore. You can't out-casual Nintendo now that they've figured out how to get actual games on their platforms, and PC hits every price/perf point possible, catering to people that the "one size fits all" console experience won't cater to (which is a lot of people).
