You can actually make a set up that is compatible with both PC and PS5. Logitech, Thrustmaster, and Fanatec are your three options for this. If you just want to game exclusively on PC, Moza would do the job well. The premium one would be Fanatec, but a full kit of a PS5 bundle might be slightly out of your budget by a couple hundred dollars for the cheapest one. The next best option is the Logitech RS50, which has 8 nm for a total price of around $900 with the pedals and clutch (clutch is $40). To answer your other questions, sim racing on consoles in general is not quite great as of right now, but a couple of games are coming to PS5 and Xbox, like Le Mans Ultimate, Assetto Corsa Evo, as well as Project Motor Racing if that game gets fixed. For now, you have ACC, the original Assetto Corsa, PMR, and GT7 for a less realistic option, as well as arcade racing games. Sorry for the whole essay!

Thanks so much for the helpful answers! I know Logitech is great for entry-level stuff at a good price, but (and I recognize some of my own irrationality here) I'm particularly interested in formula-style equipment because I enjoy F1 a lot (like the Simagic FX Pro wheel, which seems to be the best deal I've found on a high-end formula wheel with a display). Thanks for the info regarding the games, looks like PC may be the better option. Out of curiosity, how come the F1 games aren't super popular for sim racing? From all the content I've seen out there, everyone seems to play all the games outside F1 or F1-style games.