Not left the house yet so got time to comment on these. Firstly, yes, the price of fucking everything has gone up and it stings. But what people are quick to ignore is that the public is still spending tons and tons of money on entertainment, more than ever, in droves - I know it's remotely not like-for-like, but the live music industry is going through a bit of turmoil right now with how some tickets are priced, especially in the US. One Taylor Swift ticket in some places is going to cost more than a PS5, 3 hours of entertainment vs. however long it takes for the thing to break. And yet she's still selling out stadium after stadium. Glastonbury festival still sold out in an hour at almost $450 before spending money and supplies. And it's not just rich kids with daddy's credit card; when prices get out of control, everyday people still spend on what they love to combat the misery. Perhaps they spend less overall, but they still spend, and PS5s are still selling to people on lower incomes.
On the second point, I would say it's Nintendo's brands that keep them afloat rather than a staunch dedication to their hardware. Sure, I'll buy a Switch 2 because it's the only place I can (legitimately) play those games, but I'm only buying it because I want to play those games. If Xbox had kept themselves limited to consoles, I simply wouldn't have bought one because I don't have enough interest in their software. I never owned an original Xbox, 360, or One, and only bought a cheap second hand Series S briefly to rattle through some older titles before I sold it. Then I got PC Game Pass and didn't look back. When it comes to Sony, they'll get my money for their games, but I'm struggling not to sell the system and just wait for exclusives to go on sale and then discount on PC. If those titles were there day one, though? Different story.
Anyway, wall of text so appreciate the time to read but I really gotta leave the house now!