Steam bringing steam decks to physical stores and making a home console would be big competition to Sony. But I feel that they are being too slow to expand the deck project. Switch 2 is coming out in months and we have proof that Sony could launch in 2 years with multiple consoles at once.
Maybe a portable, a high end console and a PS Vita Tv type of device that uses the portable hardware (this one is totally speculation on my part).
Valve is being too slow, and competition isn't resting on their laurels.