Well, they will not win this generation, and will not even enter the next generation. So, no, their ship has sailed. They had a chance, but squandered it, and are sliding away into irrelevance.
Unless Sony decides to make a PS5 with a mandatory gimmick camera, always online, region locked with physical disc DRM, and stops supporting PS4 two years prior to PS5's release, they will remain #1 for good, just as they have been 75% of time until now.