PS5 is for most a continuation of 8th gen. Microsoft is not delivering anything substantial either and Switch is just way too underpowered to get major AAA games
If you had a PS4 and look at Switch and Series S-X it's a no-brainer: You get a PS5, it's just far better value all-around, even if for just playing your old library with better resolution and FPS
Honestly for being such a good piece of tech I don't think PS5 is expensive. It will provide a substantial performance for more 4 to 6 years, as no game has yet to demand PS5 full power capabilities
The real and true competition for PS5 is PC gaming rising. But even PCs are costly and just too complicated for casuals who just want to play the next FIFA, COD and GTA
And while most people think on exclusives when thinking of the value of a console, but exclusives only matter when you have multiple hardware. Most people don't have fancy PCs or both PS5 and Series S-X. If the game is multiplat it still counts as a game for the console you own. PS5 Library is full of great games.
Nowadays you have so much backlog from indies to 7th and 8th games by dirty cheap prices with digital media to play on PS5 and never feel the console doesn't have enough games. Games are now often MASSIVE, I have spend over 400 hours in Baldus Gate and Elden Ring alone and don't even think I need more games because of how good and addictive those games are. Gaming boards like here are the only place on earth where I see people complaning about modern games being "bloated" and "having too much filler" (mind you those fillers are 90% of times optional but people complain anyways), in real world people just want to extract the most value of their purchase
This ignoring the big elephant in the room: The rise of Game as Service, where people play the same game for years like in MMOs. They don't need that many new games, when a good portition of their playing time is just dedicated to GTA online
Hence the perception of lack of games on PS5 is misguided and mostly reflect hardcore gaming entushiasts who play A LOT, have small backlogs and plays mostly single player games
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