This business model is very much high risk, high reward. If all the stars happen to align just right, you might stumble on a new Fortnite and then you are set. However, that is very unlikely to happen, as we have seen many a time already. The market is saturated and once people get hooked onto something, it will require something extraordinary to loosen their grip and try the new thing. You are likely to throw years of development and hundreds of millions into the wind.
Long development times don't help, and if you are just trying to catch a trend wave, you will always be late to the party.
Oof, what a misstep for Sony. And it has come at a cost with regards to their core identity. Sad times.