Yup. It’s why they’re unlikely to get conversions, but they might get people to do both.
Consoles compete with PC gaming, but they’re not substitutes. The best they can hope for is people who are relatively indifferent to the advantages a PC has being persuaded by the console advantages, or people who are okay with just having both picking a PS5 over an Xbox or Nintendo.
For the latter, I think they’d be better served looking for a way to do “but it in one, play it in both” type deals, since that makes the ambivalent people more likely to default to PlayStation, since they still get PC, and the “both” people are more likely to buy sooner, since waiting doesn’t get them anything.