Even though it's the beginning of a new generation, but there have been massive speculations when PS now was announced that cloud gaming would end up being the future as it doesn't require a physical console. There have also been rumours that the PS4 or the eighth gen consoles would be the final generation due to cloud gaming. When it comes to profits, it doesn't make sense as to how devs and publishers are going to make profits out of their games as consumers are paying a subscription and have access to all those games.
This is all stupid as to why sony is planning on ending their tradition of physical consoles in the future as I prefer physical consoles over a dumb streaming service.
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