>if you want upfront payment on the hardware or not.

You don't get a choice is the issue, more so this is hidden from the consumer that it's occurring.

If when you buy a PS5 you sign a contract saying that you're buying hardware below cost is one thing, but without that contract there is no binding agreement at the time of sale. Without this selling the hardware below cost and you paying for the games is just a really nice thing that Sony hopes happens.