I always see people online talk about their productivity work needs for their home PCs. But I would be absolutely shocked if the average person needing computing power uses it for anything other than gaming at home. The productivity stuff they'll do at their employer's, and when WFH became a necessity most employers provided the hardware to their employees at home.
Regular work, browsing, Office, etc. requires little to no computing power. Anything in the last decade works perfectly fine, cheap netbooks work fine.
So again that leaves gaming. And this new hardware is way too expensive for little if any increase for the average gamer. Plus PC hardware competes with consoles for pure gaming loads. Consoles are optimized and have a standard ecosystem in place that's very hard for PCs to compete with--PC uses brute force hardware and still needs proper ports, drivers and OS support to work. That is often an issue, with each dev making excuses blaming each other, clearly not on the same page. The consoles they are forced to be.
And I didn't even mention mobile gaming, which is huge, and which the average person is apparently perfectly fine with. Especially as WFH is ended and many are forced back to commutes and offices.
PC gaming is going to have to drop prices. They clearly have gotten together to price fix up. Fortunately the consoles seem to not be able to do this, so they compete on price against each other. It's also important the consoles are in an actual market. PC components need to decline in price and I think it's inevitable, but it will take another year or two most likely for the bubble to deflate and these companies to accept they will have lower margins and revenues. Samsung is already seeing that for DRAM and smartphones.