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I have to disagree about PS5 sales being lost permanently.

Plenty will just be holding off and sticking to their PS4s as most games are still crossgen, and even if they do settle for a Series S in the short term, buying multiple consoles is not that uncommon and given Series S is the budget model, upgrading to a PS5 later may be seen as similar to how folks upgraded from a PS4 to a PS4 Pro last gen.

The console market has proven time and again that most customers are not brand loyal and so buying an Xbox now doesn't mean they won't get a PS5 years down the line once supply issues abate.