The extension of the night train Paris-Lourdes to the Basque coast was launched by SNCF last Friday. The night train to Hendaye runs for two months this summer, until 28 August.
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Paris – Hendaye takes 4 1/2 hours by TGV, with the first morning train departing Paris 07:11 and arriving Hendaye at 11:47. The night train departs Paris 10 hours earlier at 21:14 to arrive just one hour earlier at 10:42.
I cannot perceive that as competitive, except for a few travelers that want to save a hotel night at Paris (however, the French night trains have no sleeper compartments). But a night train route like Amsterdam to Hendaye and/or Paris to Madrid would be much more attractive.