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PotentHerbs said:

The most common answer is to start putting their first party titles on Playstation Now day one.

"We have had this conversation before -- we are not going to go down the road of putting new release titles into a subscription model. These games cost many millions of dollars, well over $100 million, to develop. We just don't see that as sustainable.

"We want to make the games bigger and better, and hopefully at some stage more persistent. So putting those into a subscription model on day one, for us, just doesn't make any sense. For others in a different situation, it might well make sense, but for us it doesn't. We want to expand and grow our existing ecosystem, and putting new games into a subscription model just doesn't sit with that." - Jim Ryan September 2020

I think it has more to do with the fact that they have 47.4 million paying subscribers and launch revenue from every first party title. They would stand to lose a significant amount of revenue by tying all of their games to a service.