Main reasons
1) Cheaper to build products like a PS5 in massive quantities than individual PC components and assemble a PC.
2) Console manufactures sell at a loss and make their money on ads, subscriptions, and profits from the digital store.
3) Performance is not exclusive to the power of the physical components in a PC or PS5. Software optimization also plays an important role. Console developers only have a few hardware configurations to program for which helps them squeeze extra performance in. Compared to a PC game which needs to run on lots of system configurations.
TL:DR Economy of a scale, undercutting the price, and consistent hardware configurations helps a lot.
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