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Machiavellian said:

It seems some people miss the title of what the OP asked. Will we see a release game in the PS5 first year on the same level as the UE5 demo. I have no doubt we will see Sony first party studios surpass that demo but in the first year of the console release well, I just doubt it. We will probably see some hype trailers but will we see release dates within the year of the console release, this is what I am doubting.

For the UE5 demo, thinking about it, it took 6 months to create and it really has nothing in it. What I mean by that its not a fully developed game but basically a walking simulator. I would be surprised if we see anything on that order within the first year unless its some very basic type of game. A fighting game comes to mind but nothing on the order of Horizon 2 but I am willing to be surprised.

It's not that there was nothing in that demo. It showed a whole game world and the foundations for an actual game. Obviously there were no enemies or actual gameplay mechanics but building that with just 24 people in 6 months time, is pretty impressive, especially considering Sony's first party studios generally have between 200 and 400 staff.