Overall console growth may have stagnated over the last decade, but so have hardware prices, especially for PS hardware.
I wonder how many more consoles would get sold overall this gen if SNY and/or MS went back to subsidizing the hardware? Like starting now, since both have seen a slump in sales and both should have plenty of production capacity by this point. Lower prices from the start of this gen wouldn't have mattered due to the shortages early on.
SNY has got to be making money on every unit by now even with inflation. Imagine them taking $100 hit to that, leading to a $349-$399 PS5 right now, and imagine the prices kept falling slowly like they used to as the gen went on.
I don't think the overall combined console sales have necessarily stagnated due to merely a lack of interest, but also due to the higher entry pricing of the hardware throughout the gen. There's a reason why the XBSS sells so much better than the XBSX. The more expensive a console is, the more appealing a cheaper option, like mobile becomes.
Are overall combined console sales stagnant because potential customers are simply not interested at all, or is it because the gaming companies are actually making higher profits by selling the same amount of stuff for more?