the advantage the PS4 and PS5 had was the physical console sold at a loss in a shorter time window.

the PS2 had to push the DVD format to be mainstream, and the PS3 pushing the Bluray format as mainstream (the PS3 was effectively the cheapest bluray player on launch), while both devices retaining backwards compatibility initially by including the previous generations cpu.

also having the market move to digital saves a lot of cost on logistics and pumping out physical copies.