Maybe, but I really doubt it - it would be cost inefficient, given that AMD is already doing that for their next GPU lineup.

This is not the first time similar thing is happening - XBOX 360 was launched with semi-custom ATI (AMD) GPU that had features (unified shaders) that their (or any other at the time) PC cards didn't have yet.

Actually if we are being honest:

DLSS is not superior in every aspect. In fact the only area where DLSS is clearly superior is in processing certain forward motion vectors.  DLSS is also 4  years old and PSSR is on its first iteration.

PSSR, in its first iteration is more than good enough, completely leaping over FSR and matching DLSS in most areas. We expect it to improve over time.  Results in games like FF7 and TLOU are quite transformative and it will be providing PlayStation gamers with a very decent alternative to FSR and DLSS.   Other games will do doing 8K60 upscaling which, according to the people who have actually seen it, is incredible. 

As far as AMD cards go, this is the BEST iteration of an upscaling tech availible on any AMD hardware. 

Can they make it better and improve for the PS6, for sure, but there is no real reason to devalue the work they have done here. 

Sony's is a closed ecosystem.

AMD doesn't have dedicated Machine Learning cores like nVidia's Tensor cores across it's entire hardware stack.
...Yet.

That doesn't mean AMD's fastest GPU the Radeon RX 7900 XTX can't do Machine Learning, it absolutely can... But, it needs to run on the shader pipelines which takes resources away from the GPU that could be used to render the game.

In short, there just isn't any point to it yet.

And AMD's hardware that benefits the most from A.I Machine Learning upscaling? They suffer from the same issue as the above Desktop GPU's like the  Ryzen Z1 Extreme in devices like the Rog Ally.

However... AMD does have the Strix Point APU's which could do it in hardware. - But what's the point in releasing a DLSS alternative when you only have a couple of APU's that can leverage it?

Things will change when AMD moves away from RDNA3 across it's entire product portfolio.

Correct, AMD backported some design elements of RDNA3.5 and scaled them up for the PS5 Pro.

AMD had already done the work with Strix point.

If we want to be truly honest... DLSS>XeSS XMX>PSSR>XeSS Dp4a>FSR in terms of quality.

DLSS is superior.

PSSR vs DLSS differences.
* PSSR has fizzle, DLSS is much more stable.
* DLSS has better temporal stability with geometry. - Less edge shimmering/flicker.
* PSSR has a more Aliased output.
* DLSS provides a sharper, cleaner image over PSSR. - Regardless if it's a still or moving frame.
* PSSR smears/ghosting in Ray Tracing.

PSSR does have a few advantages, like less aliased/checkered resolve on reflections... But overwhelmingly DLSS is far superior.

1) It's not matching DLSS. It's not even matching XeSS XMX. But it is beating FSR and XeSS Dp4a.
2) It's definitely "good enough" which is a statement I stated earlier.
3) Improvements is expected. - However DLSS will also continue to improve, which has been happening for years, that won't stop because the Playstation 5 Pro has a competing technology. - And just because the Algorithm has improved, doesn't mean all games will benefit from that.. Developers have a bad habit of not supporting games over time.

Correct. Good thing on PC... You aren't limited to AMD, you have nVidia and Intel.

AMD will be taking some learnings from this which will benefit the next Xbox and Playstation as well as PC.
And nothing is being devalued, I am stating some hard truths.

AMD can't beat nVidia yet, they just need to be "good enough".