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It's true that the Xbox was going to sell out 2020 regardless of launch lineup but maintaining momentum into the new years is important. You need consistent releases to maintain demand, Holiday 2021 is too long to wait, launch momentum won't keep you going a whole year.

By July 2021 the PS5 may have potentially already released Miles Morales, Demon's Souls, Sackboy, Destruction All-Stars, Returnal, Gran Turismo 7 and Ratchet & Clank.

PS5 is going to keep up it's momentum and keep demand high, Xbox by summer 2021 is easily going to have the capacity to produce far more consoles than demand requires.

Consistent Releases Matter.