Oh dear. Where do they go from here? Both X and Switch are poised to overtake Sony because they have actual innovative technology. The masses have spoken.
So what do they do? They could do a Vita successor but when they sold Vita on AAA games, promised every studio they owned would make Vita games and completely failed to deliver the promises they made it will take more than a fancy screen and big graphics to win over the Vita owners they betrayed.
On the other hand they have to react to Microsoft. Their best option will be to bring PS5 forward and move on faster then they have in the past thus hurting the feelings of all the ponies that are used to their super long life cycles. But they only had long life cycles previously because they had no real competition in the console market and they needed to recover from PS3. Could Microsoft be the company that forces their hand and breaks their 7 - 10 year console life cycles?
With both systems taking the market by storm the clock is ticking and Sony is losing their market lead.