They definitely want to sell hardware and have closed platforms built around their hardware.

But that’s not as easy to do as it was even 10 years ago.

The nature of gaming is changing and it’s more difficult to differentiate based on hardware alone. You have indie games which tend to be multi-platform, you have Roblox, Fortnite, PC specific games have also become more common.

And it’s difficult to manage hardware costs and show meaningful graphical quality improvements. Hardware subsidies in the first few years of a new console are basically not viable anymore.

Even Nintendo’s handheld dominance is being slowly challenged (their games are extremely expensive on a relative basis).

Not if there is no impact on your console platform if a given market segment would never spend money on your platform in the first place.

I bought Death Stranding and Heavy Rain on PC, I would not buy a Playstation just to play those 2 games.

It’s their call of course, I think the era of consoles as a siloed platform is slowly coming to an end.