They have way more demand than the offer they can supply.
So a small price increase maybe decreased a small portion of the demand, but the demand is still way higher than the offer they can supply.
So yes, I don't see the price increase affecting their demand.
Also, the price increase wasn't because Sony was greedy or something, it's due to big increase of overall things that affect everybody dollar value going up (well, this one affect non-US companies), components pricing or shipping costs. Meaning many other tech products saw or will see soon similar or even higher price increases, creating a context where people won't see the PS5 price increase something rare.