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Considering your estimates are wrong, no it's not shrinking. The PS4 hasn't even hit $199, yet. Once it does it's sales will continue to slowly decrease, not plummet off of a cliff, as you seem to expect. It should at least hit 125M.

Now, you may end up being right for XBO, as it seems to be decreasing harder than PS4 and is already effectively $199, depending on what bundle you get. It will probably plummet next year. Still, I think it can at least hit 49M-50M.

That's 175M, which beats last gen. It's even possible that it matches the gen before that, with PS4 doing 130M+. It really depends on how cheap the PS4 can get and how expensive the PS5 is.