Still gonna happen, so yes.

The PS4 basically died as soon as the PS5 came out. However this was not the case with PS2. But the difference as some have pointed out is that successor to the PS2 was prohibitavely expensive. The PS5 was not when it launched. The projected PS6 price is 'expensive af'. In about a year or so when the RAM prices fall back to earth, the PS5 will probably be very attractive. Of course if the RAM prices fall by a lot, the PS6 might not be that expensive either. A 500 USD PS6 would kill the PS5 sales. And PS5 should still have about 25 to 30 million left in the tank. So we are looking at between 120 and 125 LT sales. Obviously an overperformance this holiday would make it a lot easier but we don't even know if Sony can get enough ram to make that a reality.

I still stand by my maybe vote.
GTA VI has helped so far before release and will help somewhat.
Also, we're looking at a protracted launch to replacement cycle. I still predict PS6 isn't coming out until November 2028, and it could take until November 2029.
Whether it dies super quickly when PS6 comes out or not, it's all but guaranteed to outsell PS4 if it's not replaced until late 2029. If somehow Sony says screw it and launches PS6 in November 2027, I only see PS5 outselling PS4 if Sony still makes enough of them. PS4 could've sold 125 million or even over 135 million units if Sony made enough of them and possibly had a permanent price cut eventually down to $200 or $250.

I am shocking myself by saying no. I could be wrong, but the price is going to kill their market. I don't see many paying $650 for a console, not when the S2 is way cheaper and has many third-party games. I think many like games, but don't love games (e.g. requirement for $650).