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trunkswd said:

Sony is expecting PlayStation 5 hardware sales to decline year-over-year and has no major first-party releases from existing IP for the next fiscal year, which runs from April 2024 to March 2025. Not looking good for PS5 hardware sales. 

This is the problem right here.

Sony (and Microsoft) put all their eggs in the AAA first party basket they didn’t leave any room for B-C tier first party titles that can stem the tide or hold fans over until the next major A-S tier 1st party title. And now that’s starting to come back to bite them.

And they can’t always really on 3rd parties to bridge those gaps because they’re dealing w/ the same problems as they are - rising development costs, time, and resources. With less 3rd parties to go around, this is when they need to rely on their own in-house development the most - Which they have invested little in. Now they’re starting to pay the price for their negligence.