The whole point is that they aren't accepting it. In terms of sales PS2 > PS4 > PS5. That alone is already a big issue but it becomes just comically bad when you consider that the world population is about 33% larger than during the PS2 era, gaming has become completely normalized, and that the competition in modern times is mediocre.
Have profits gone down?
No, but they're also monetizing a bunch of extra ways that they weren't in the past. In the PS2 era, Sony made money from the cut of physical games and accessories and maybe the console itself if it was purchased far enough into the console lifespan. These days they have online subs, cuts of DLC and microtransactions plus all the other stuff they had previously. And they get bigger cuts for DLC, microtransactions and digital games since they are the (only) retailer.
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