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Otter said:

The Japanese State of Play was very disappointing and reinforces that they deserve their sales position in Japan.

Reliant on third parties creates quite a hit or miss affair, other than the horror games there was really nothing there to justify why you would get a PS5. Most of those games are coming to S2 and look they would play just as well on the system. Better yet they look like you shouldn't even need to upgrade from a PS4 to play them.

The content gaps left between the huge releases like Final Fantasy/Monster Hunter needs some more inventive AA games (Like Astro). That's when it's Sony's responsibility to have more than 2 flagship releases per year.

Its hard to say what the content gaps truly look like without digital sales. I mean, if Sony didn't reveal Ghost has sold over 1M+ in Japan, how many would even entertain the idea that nearly 40%/50% of its sales were digital, based on the actual physical sales from Media Create. 

I wouldn't be surprised if GT7 has also reached 1M+ sales in Japan. It would just be the usual mocking and dogpiling if you suggested this in an upcoming Media Create thread lol. Regardless, the PS5's declining sales is mostly due to the price hike, which hopefully the region locked PS5 can help alleviate.