The only people who didn't understand that this is exactly what would happen were the execs at Sony and Microsoft.
The entire point of a console is that it's simple, reliable and cheap. If it's not all of those things then people will find alternatives.
From Circana's US Retail Tracking Service:
For 2026 YTD ending August, Xbox hardware unit sales are down 33% versus a year ago in the US, while PlayStation hardware units are 25% lower.
Xbox YTD US hardware unit sales are at an all-time low, while PlayStation is at lowest point since 2013.