We have to see what's happens with switch 2 cause the industry could be in really trouble if that doesn't do great.

Nose dive is quite the term for PS5 when Sony is projecting 21M for their current FY lol. That's comfortably above the peak for PS4 sales. 

Profit margins are an interesting discussion, with ballooning budgets and increased dev time for AAA, however I think its a bit premature. Sony's most profitable years are still ahead of them, and the integration of Bungie has eaten into their margins.

Feels like most gamers are not interested in high end power and are happy with ps4 like graphics. Implies to me that Sony needs to think outside the box with the ps6.

This doesn't make any sense considering ps5 hardly has any exclusives that are not on ps4. The only real selling point is more powerful and faster hardware.

Perhaps.  Just between Switch sales and GPU use via steam surveys it does feel like power isn't a driver like it used to be.  I don't personally fall into that camp, but that seems like the trend.  

I'm surprised at how many people were still using 1070s and 2070s.  I wasn't satisfied with my 4070 which rips a 2070 apart.  

Hardware sales are up 1.1 million year over year for the quarter and after Q3 totals 16.4 million versus 12.8 million last fiscal year.

PS5 Versus PS4

For the 3rd quarter of the 3rd full FY (yellow) the 8.2 million the PS5 shipped is 1.5 million down on PS4's 9.7 million and after 13 quarters PS5 totals 54.8 million compared to 57.3 million for PS4. This means launch aligned the PS5 is 2.5 million behind PS4.

Well yes Switch still selling the way it is mind boggling to me considering how poor and the old the tech is at this point 

The HD twins are PS3&360. Don't tarnish the memory of those beloved by everyone consoles, and indispatably the best generation there can be and the real power and potential of both Sony and Microsoft shown, with that mediocre presence hybrid of consoles PS5&XBSX, which are nothing compared to the real HD twins. PS4 and XB1 are somewhere in the middle, but from gen to gen since 7th gen, console gaming is going only down. The peak was 360&PS3, by every possible factor there can be (maybe only hardware sales combined - for now at least). So those you can name "4K twins" or maybe "runner up to 4K twins" something like that. This gen compare to other console generations, for now it's maybe the worst, by every factor. And no xbox throwing the towel or selling worse than XB1 has nothing to do with this. The original XBOX sold 24M lifetime and even that gen was very strong. But "HD twins" is now a classic and a legend name, reserved for the best console generation of all time, and for the best consoles, by every factor - PS3&360. (I am talking purely for the standart console model here and the main competitors from the last few gens. Not putting Nintendo anywhere, as they are their own thing. So they are good in their own way).

And in the end I am posting some very adequate video here, the guy is very right:

The first party part is dissapointing but not shocking as I think the only major studios that could have had something ready were Sucker Punch or Bluepoint and we haven't heard anything from them. Still Naughty Dogs disappearance act is definitely being felt this generation.

Regardless I don't think we need to be too worried about PS5 sales as it's still currently the console in most demand by far, but it does make me wonder if we'll actually see the first pricecut in years to try to keep up with PS4 sales. Honestly this is all pretty good news for Nintendo though if their new system comes this year as there isn't that much competition for people's attention right now.

Just let me pull out $2000 in pocket change for that 4090. GPU prices have been out of control for years and years.

As some have mentioned already, the main problem is price. I was finally considering buying a Slim during the holidays, but that was anticipating a $399 price. When they not only didn't drop the price $100 or even $50, but raised the digital price by $50, I was like nope, guess I'll keep waiting.

Same with Plus. 35% price hike all at once, supposedly due to inflation? Nope, not happening. I downgraded to Essential.

The type of people buying present gen consoles going forward are mostly casuals who don't have oodles of money lying around. They're the type of people who buy because the Slim version is out and is cheaper. In this case those people have been hurting financially for quite some time and the future don't look so peachy right now, so they would already question a $399 console purchase and aren't going to entertain one that's still $499.

Unless XB nukes their future console plans, leading to automatic PS5 sales because of it, SNY will have to drop hardware prices sooner than later.

I'm also waiting for my all matte black SKU. PS can sell red, blue, and green plates all they want, but white, black (and grey) should be available stock.