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I do wonder how much of an impact a portable variant could have on the PS5's future in Japan. It won't necessarily negate the software preferences of the region but it may make hardware more appealing and thus shift software dynamics. Also if the S2 is able to generate more interest in certain franchises like RE/Final Fantasy, that may be a raising tide for other third party titles on playstation to be seen as more appealing.

It'll be interesting to see how things unravel down the road but I think the next year or so won't see much shake up other than Nintendo continually dominating with the established IP. Will be interesting to see how games like Pragamata, RE and FF do on S2.