I think the difficulty to price cut and still remain somewhat profitable is the biggest factor for Sony's shrinking profit margins.

At this point in time for the PS4, Sony was able to cut price and break even, but the PS5 doesn't have that same luxury. Maybe that's why Sony is doing temporary discounts every now and then, rather then just cut the price entirely.

Having no major first party releases from existing IP is not the same as having no first party releases at all. 

Concord can release in 2024 and the bolded statement would still be true. I would even say the rumored Astrobot game falls into the latter as well. 

Sony biggest competition is steam. look at third party  sales on that thing. Switch hasn't even moved the needle yet in terms of being a third party selling machine.  

Still images, just my opinion, don't do ps5 games justice.  60 fps at 120 hz is striking, at least imo.

Hmm, as a console gamer, I don't think that as a major threat. Steam is thriving but I don't see it replacing consoles, the vehicles of play are just very different. However anecdotally I do know that most of my friends are already a bit iffy about investing in multiple consoles. Switch First Party carries more weight than Sonys, so I do think if quality 3rd party content was  day and date on Nintendo's platform. A lot of them would be questioning whether they need to have a playstation for the few big exclusives that won't arrive on Switch (God of War, Spiderman etc)... In some places like Japan that applies even more so. 

I mean both those screenshots are poor representations of each game lol, but I doubt most people toggle to the performance mode. I'd love to see the data which I'm sure Sony has on their 1st party titles on what people use, so far their games default to Quality mode aside from God of War and Demon Souls, and I presume that's because both games performance modes look just as good as their quality modes. 

Sony has just had undercover hit with Helldivers II, so hopefully there is nothing to panic about in regards to first party content. We just won't getting any big established franchises in the next 14months, which isn't the end of the world.

Many of my nephews friends have abandoned consoles for PC. They get free online play plus you can play everything and do so many things on PC, key board and mouse is so much better for shooters as well, games are cheaper and emulation. you might not think it's a major threat but third party's are now thriving on PC thats why even sony releasing games for PC, it just shows how big the market is getting. People are not gonna leave the playstation eco system  unless Nintendo offers something much better. I honestly would not be surprised to see Nintendo releasing games for PC. 

Sony made a mistake with quality mode.  Performance mode looks just as good in all the games I tested but runs way smoother.  The ps5 should only have Performance mode.

The difference between 1440p and 4k is minor if not non existent.

Yeah, that's fair. For the new generation I'm not really aware of their habits. Even then, Nintendo & steam I think can comfortably tick a box that leave sony with a much reduced audience.