It was doomed, we just didn't fully understood how much MS was bad at this console businesses. The moves Sony made during the PS3 comeback and the mistakes MS made in the second half of that gen are what ended up setting up the PS4 and PS5 to be so dominant.People thought that Playstation was doomed during the PS3 era as well. It may suck for a while, but I think Playstation will endure this. They just have to get to work and remind people how they became so dominant in the first place.
Can Sony afford to assume MS would throw it all away again if they get another opportunity? MS just paid $80B to get back on the table.