Hopefully now people who were comparing PS5 to Wii U can see that its a stock limitation and not lack of demand. There is no visible brand crisis as was being implied by many,
Well, it's a complicated matter, isn't it? Weekly sales of the PS5 are healthy now so that's a good sign. On the other hand software is still nowhere to be found in the charts, so it looks like this is still launch demand. We have to keep in mind the PS5 is at 422k lifetime sales right now. The Wii U had sold that after two weeks. The 3DS was at almost 600k after two weeks. The PS4 was at 500k after two months. (I'm using the VGChartz comparison tool so I hope these numbers are accurate).
I certainly wouldn't say there is a "brand crisis" in Japan for Playstation consoles, but Sony's market is shrinking (even though I'm sure not many people expect the PS5 to sell as bad as the Wii U). Even if we expect the PS5 to sell 10 million units lifetime, that's still a drop of almost 6 million units compared to the PS4 + Vita install base. The question remains: Is the current level of hardware and software sales enough to attract a large amount of Japanese third party support? And will the console sell better or worse than PS4? Because Playstation consoles (in contrast to Nintendo hardware) have actually needed good third party support in the past to sell well in Japan. If the install base is not big enough more third parties could release their games on Nintendo consoles, which would result in lower hardware sales for the PS5. We'll have to wait and see what happens.