There's also questions around the game industry as a whole. I think the recent layoffs at major companies aren't just another cycle, but systemic. The market no longer bears production of giant games with crazy graphics that cost $70 and have a bunch of DLC and gambling mechanics attached.
Games won't go away, but they'll play fine on something like the Steam Deck, Switch 2, or modest gaming PC. What would high end console hardware bring to the table anymore?