Ok let me explain. Thanks to Valve, SteamOS, the Steam Deck, and partly to xbox and windows11, the balance on "what gaming product to have" shifted. Suddenly:

• All your games available on PC could be also available on a mobile platform. The same games from 3 console gens ago.
• Your games could also be available in your living room, like a console or with a Steam Deck docking accessory (Also with Streaming from other locations in your home).
• There is lots of VR options included, all compatible with the same software.
• It's still free to use their platform, no extra online subscription.
• You can use any controller you wish. And with any I mean every controller from every console or third party.

The Console market already has these features, but not all of them. Before, players had the preference on buying consoles for their easiness of use. Now it's easy to use a PC for that. Steam machines never took off, but thanks to the Deck, it exists both for mobile and for your TV. Most of their catalog is available.

Xbox already shifted to a mix console-PC, betting all on their game pass and to have cross-play exclusives on both platforms. Crazily enough, thanks to Microsoft forcing the update to win11, Xbox is included automagically. More new players just by virtue of accessibility. And with game pass subscription (which is pretty much the norm these days with streaming subs), I don't think their market is small. Their console now is an accessory.

Apple and Google also now are the biggest platforms for mobile games available. Lots and lots of new players that the Consoles can't touch. It's too cheap and accessible for consumers. Still, it's funny most of the hardcore phone gamers play these games on their PCs with emulation. Better screen and controllers.

Nintendo still has their very iconic and popular exclusives, a mobile and living room platform to publish. And their games are always expensive as fuck. No VR, but we'll see with the next Switch (they always work with gimmicks). Sadly for them, most of their recently released games could be played with emulators. "Illegal", but easily possible.

Other factors like popular online games also exists. For years kids have been played cheap or free games with mods (like old gta san andreas and now gta5) to make their fun. Minecraft still is awfully popular. PUBG and DayZ like games had their origins on PC. Stupid bad early access cheap games are also available on PC first. These players will probably upgrade their experience on these games before buying a console.

Sony. Now, their only move has been publishing some games PC. Very important games. Which they got their sales. But these days, consoles feel like a niche market. Their player base hasn't changed, but now there is more players than ever. Too many competitive actions from xbox and steam, and also the mobile market continues growing.

So unless Sony and Nintendo next consoles can at least compete with a mobile device and keeping all of their other features, I find hard to believe that they would be able to keep their player base. Fans will be still there tho, still lots of players.

Other gaming companies also see this. They will prefer less publishing with Sony because the rest of the market has much more consumers. Ports will be cheaper.

Unless they shift somehow, it will be slow death by a thousand cuts. Their latest move is a good move for now.

tl;dr: PC has too many new market shifting features in recent years, aside for the ones that already existing. Consoles probably won't be able to keep up with changes unless they shift. Like xbox did.