It wasn't the PS2 that did it. It was the PS1.
In a hilarious turn of fate Nintendo was working with Sony to to build a CD drive for the SNES. But pulled out of it after seeing the disaster that SEGA ran into with the the SEGA CD and other items. This lead Sony to develop the Playstation as they had already put in the work. Sony then took over because the N64 stuck with carts where there simply wasn't enough storage and the Saturn was built for 2D games (and some of their Japan only ones are godly amazing) and then they had to rework it at the last moment once they realized things were going 3D which made it a mess to work with.
As for fighting games.... nah Sony lagged behind. In the PS1 era all the Capcom fighters ran much better on the Saturn and it had six face buttons. While the Saturn doomed the Dreamcast the Dreamcast was based of SEGA Naomi hardware. The trick here is that Naomi was also the arcade hardware games like MVC2, CVS2, and more ran on so Sega had arcade perfect versions of a lot of them. Sony's advantage was Bandai with Tekken and all their other stuff was using PS based hardware.
And for people who complain about lack of innovation in gaming the Wii, DS, 3DS, and Switch were all innovative and all outsold their competition at the time despite being weaker from the hardware side of things.
Clearly Nintendo knows what they are doing while the PS5 and XBOX SERIES mostly share the same multi platform games which are then half assed over to the PC.
Then there's the issue that PC gaming is going to be the first to be cloud based. There's no stopping that so accept it. PS and XBOX are clearly moving to digital distribution as well. Nintendo will be the last one selling physical games and the last one to move to the cloud.
Valve is making moves to ARM as well.
Proton may be prepping for Windows Arm emulation support, but as for an Arm-based Steam Deck 2? I doubt it.
www.pcgamer.com