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IcaroRibeiro said:

Sony is actually the second biggest publisher in Japan right now. Their games sells well with Ghost, Spider Man, Gran Turismo, etc

The only bigger third parties I can think of are Monster Hunter, Final Fantasy and Dragon Quest. They lost Square, but the sales had already crumbled even when FF was exclusive 

What hinders Sony IPs to grown is the lack of them in handheld form

Sony already had its "PS1-era lite" with PS4. So many Japanese exclusive games and yet they got destroyed by 3DS and Switch

The simple answer is Japan like handhelds systems. With a handheld system Sony will grown again

Are they, though? This is how much publishers have sold in 2025 so far:

 These are based on Famitsu so it's physical only, but I kinda doubt that digital would be enough to make up the deficit.