For a mid gen console simply having a larger gpu on the new node is probably enough. That's mostly what PS4 Pro was.
Sure if that is also what your competition does. However if RDNA 4 is a large departure or Zen 5 is a large departure and your competition has it and you don't it can be very problematic. Esp with RDNA 3's weakness of ray tracing. Not only that but you also might be getting stuck even further behind on the pc side as more and more games go Raytracing.