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Soundwave said:

This stuff never matters, people said this with the first Switch too "OMG! How can it be the same price as the PS4! Don't they know Sony has XYZ games!". 

Unless you can put a PS5 in your backpack or coat pocket and play it anywhere you want and it has Mario Kart and Donkey Kong and Metroid and all the other Nintendo IP staples, then a PS5 is not doing anything. The PS5 doesn't even stop regular Switch 1 sales let alone Switch 2 and the Switch OLED at $350 is only $50 less than a PS5 Digital Edition. 

The early adopter crowd and Nintendo's IP fans are going to drive initial Switch 2 sales, they're not in the market for a PS5, they either already have one (early adopter crowd to whom PS5 is by now old news) or are never buying one. 

PS5 sales don't need to take away from the Switch 2 to cause havoc. Nintendo is already getting slammed with bad PR for this price hike. Having more expensive games than a high end, premium console, will invite different comparisons.

It's not exactly the same as the Switch having games at the same price as PS4 titles.