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This is a smart decision on Sony's part, mostly because I thought it was dumb of them to put their games on the PC.  They are, in fact, competing with the PC.  And in regions where Playstation has a major presence I believe they are more popular than Steam (like US, UK, France, etc...).  There are some "master race" PC gamers that Playstation will never get, but in a lot of regions people use the PC over Playstation for one of the following reasons:

1) Playstation hardware is not in plentiful numbers   OR

2) People lack money for a console and only get a few PC titles that run on a potato, are cheap, and have lots of content like Minecraft, GTA5, Skyrim, etc....

Sony could get more gamers in category 1, but having a bigger presence in more countries which is a better strategy than 1st party games on the PC.  I really think there is potential in places like Brazil and India to get more people to have a Playstation.  That leads to category 2, which can be solved by keeping the PS4 going in places where a PS5 is difficult to afford.  

I really think there are a lot of gamers out there that would buy a Playstation (or a Switch for that matter), if availability and price were less of an issue.  Solving these issues are a smarter strategy than putting first party games on Steam.