Ultimately, like the Bluepoint closure, the pullback on PC releases, the mass live-service push, the discontinuation of physical games, and now the abandonment of Kojima, it's just a spreadsheet decision. The June cancellation of Physint also lines up with Bungie pulling the plug on Destiny 2 and all future content for the game.
Sony's made it clear they're not interested in pushing hardware anymore this gen. They're focusing on monetizing the playerbase. You can't do that if you're sending an insane amount of money over the course of years in every direction.
Sony's focus is on ball-and-gun gamers and other black hole live service games like Roblox. And of course GTA 6, and the eventuality of GTA 6 Online. That's where the most money is, and that's who they want to focus on at this time.

You called down the thunder, now reap the whirlwind







