Their strategy right now is literally "Let's charge more to sell less, and let's also kneecap a revenue stream that could prop us up during this memory crisis." Sony has been winning so long that they forgot how easy it is to lose. They are gonna find out.

Edit: I just want to point out that Sony could have easily shifted this into a win. "Hey, this is Tim Sony, President of Sony. Right now, things are hard for everyone in the world of consumer electronics. For 20 years we've tried to bring you the best value in entertainment through quality games and low prices. Unfortunately, today, we have to raise our prices to match cost. I know you don't like it. I don't like it, either. However, we still want to give you the best value we can. While we can't control the cost of components, we can control the cost of our first party games. So, now when you buy a new PS5, you get your choice of any first party game you want for free. Any game, no exceptions. We're also throwing in 6 months of PlayStation Plus as well, which gives you even more games to play immediately. While we wish we could bring you a lower priced console, we are trying our best to make it so that you don't have to spend more to have the same amount of fun. Now, get out there, and kill, kill, kill."