The N64 has far greater exclusives relative to the PS1 than the XSeries. Mario 64, Mario Kart, Smash Bros, Zelda 64, Animal Crossing, GoldenEye, and Westling titles.
That being said, I do think the PS5 is missing titles that would take it outside of its established demographics. The PS2 had the DVD and the PS3 even had the bluray. The Wii and Switch have things to compel casual gamers to buy. Sony is really missing the boat on that, but they have the Xbox Series' number competing for the same space.
I think that is why Sony is coming out with Project Q. So they can sell to families who don't want to tie up the TV or play in the living room. I think it'll fail though, but look at the Dual Sense Edge...
Do you mean the N64 had stronger exclusives relative PS1, than Series X/S have relative to PS5? If that's the case, I'd agree wholeheartedly.
For me I think Sony's problem is not enough mid-tier/AA 1P titles, and not leveraging legacy IP enough. I also think their PC strategy is somewhat flawed, and they're jumping in too headstrong on GaaS titles (instead of say, 12 GaaS to 13 traditional, it should've been balanced as 18 traditional to 7 GaaS). I also get the increasing feeling they're taking some of their Japanese support for granted, in terms of getting exclusive games & content from that side, or even being the leading platform in some cases. Things that help give PS points of distinguishing in the market place, basically.
Project Q should've been a PS4-level portable. Basically what the Nomad was for the Genesis/Megadrive but with much better battery life and slimmer form factor, obviously. Something to play all PS4 games on the go natively, and maybe even some PS5 games assuming they aren't high-performance types (otherwise those would have to be streamed via cloud and Remote Play).
A device like that, they could've sold for $349 or $399 sold at a profit. Doesn't need high volumes of production like a PS5, but would guarantee a larger volume than the PSVR2 easily. Could probably do 25-30 million lifetime for that type of device, conservative estimate. Maybe 40-45 million in a best-case, but we're talking about something with a 6-7 year lifespan. Yes those are nowhere near Switch numbers but they wouldn't need to be; the only new games would be low-performance PS5 games that can scale easily to it, and cross-gen games (likely annual sports releases, or new indie titles, etc.). Just give it a really good screen and buttons, great wifi features and make it pair nicely with PS4 & PS5 systems and it's good.
Even better is, they could also repurpose the hardware for a high-end smartphone variant distributed with mobile carriers on subscription plans, and models sold directly with large profit margins. With that mixed in they could absolutely hit 40 or so million over a 6-7 year period between that and a more gaming-centric model. I just hope Project Q is a warm-up to an eventual, actual PS4-type handheld, but I have large doubts it'll ever happen now.