I don't think it's an existential crisis for console manufacturers, but it's certainly part of a shift in how we think about "consoles".
Microsoft has seen the writing on the wall for years now, and they've expanded their library to run across platforms. The Xbox as we knew it is effectively dead.
Sony and Nintendo are still holding on to the legacy concept, and trying to lure people into their walled garden, but even their hardware is essentially a general purpose PC that happens to be locked down in software.
So I suspect we'll see one last traditional "console" generation with the PS6 and whatever Nintendo makes next, and after that the concept of a single-purpose machine will fizzle out. Nintendo will probably be the last to give in, since they have the strongest first-party IPs to make that feasible, but eventually they'll follow suit as well.
Microsoft has seen the writing on the wall for years now, and they've expanded their library to run across platforms. The Xbox as we knew it is effectively dead.
Sony and Nintendo are still holding on to the legacy concept, and trying to lure people into their walled garden, but even their hardware is essentially a general purpose PC that happens to be locked down in software.
So I suspect we'll see one last traditional "console" generation with the PS6 and whatever Nintendo makes next, and after that the concept of a single-purpose machine will fizzle out. Nintendo will probably be the last to give in, since they have the strongest first-party IPs to make that feasible, but eventually they'll follow suit as well.