I dated a girl who was a librarian and she owned a switch. She wasn't really a gamer, but she got free games from the library. Zero chance she would ever drop 400 dollars on a Switch 2 just for better graphics. She had a 28 inch tv in her living room.
My sister's family has a tv that has to be 12 years old at this point. They have a switch, ps5, xbox one, and have moved to gaming PC, because they didn't buy a 4KTV they never got the full advantages of the PS5. My nephew watches youtube and twitch, so PC got the push and his dad was all about it, but initially went cheap before immediately upgrading the PC with a better video card returning the original one.
I can't imagine them buying a Switch 2.
Sony is going to have to entice people to buy PS5 by being the best price point across gaming, but also being available across gaming, which includes PC.
They're going to need to do something to get to this younger generation of gamers who plays on their ipads and iPhones, who don't care about AAA gaming.
AAA gaming and cinematic gaming works on our generation because we grew up watching movies. Now we get to play as if we were in the movies. These kids don't care about movies at all.