If Sony did a full hybrid PS5 like Nintendo Switch it could possibly succeed, but it would have to wait for the Switch 2, so it could be compared against a smaller library. Going against the Switch with its current momentum would be a harder sell and lead to floundered results.
It is very unlikely Sony would pivot too far from their current trajectory of homeconsole and VR just to go head to head with a stronger competitor (Nintendo), while simultaneously giving Microsoft room to strengthen Xbox's foothold.
Though, Microsoft could also go hybrid with Xbox 4 making is a hybrid battle Royale. Anything can happen in this industry.
Heck, maybe holodeck tech (full 3D space hologram projectors) develops rapidly and become the new console focus, who knows.
