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Sony simply got fucked by Days Gone/Death Stranding meta/sales and Medievil not setting world on fire. The delay of Lou2 is not helping this FY either.
Should they lower price? They are limiting the units of PS4 on promos during BF/Xmas. Looks like they think they will leave money on the table.

edit - also, early annoucement of BC in PS5 killed hype. I have personally told 2-3 of my friends to not buy PS4 not, and they were about to buy it, simply wait to PS5, grab future proof console with tons of 10$ games from PS4. If they did not, I would think otherwise.