PS5 is selling better than the PS4…. Consoles are the best deal in gaming by far!!
The device segment is way down overall after peaking in the PSWii60 generation. PS is treading water, Xbox is dying rapidly, and Switch isn't a console but a handheld with a HDMI out option.
There isn't enough money to go around for the average consumer to own multiple high-end electronic devices, not en masse. Plus consoles are having their lunch eaten on both ends: young gamers are opting for more cost-effective options (phones, Switch, and soon more mobile-centric options ala Steam Deck, ASUS Rog, etc.), while the older market is migrating to DIY PC builds that offer greater versatility (and overlap with other computational needs). PS may be getting more of the pie to itself, but there is less pie for the taking.
Cloud solves too many business problems - the issues of physical media, used game sales, hardware investment risks, etc. - that it will never be dismissed. There are limitations to the role the cloud can play, but it doesn't have to do everything: part of your computational needs can be done remotely and the other part locally. MS attempted to claim as much during the Xbox One launch, and to a degree they were correct, but they overmarketed the impact (plus it fueled consumers wariness regarding always-on connections). But they also were missing the advent of AI, which will have a major impact on gaming performance (DLSS is a prime example, but there are a number of initiatives to have native rendering cut in half - think run a game at 30 fps - and have AI generate the interstitial frames in-between to achieve 60 fps performance).