If by "people" you mean exclusively PS fanboys, then sure. But anybody else, including PS fans, wouldn't have ruled out these things categorically.

Your second paragraph is similarily off. The days of needing a PS to play PS games were numbered before this latest fiscal report already, because PS games have been brought to the PC since a few years ago. More day and date releases in the future are the continuation of the direction that Sony was heading in. Granted, the president's statement means an acceleration of this trend, but it's not exactly shocking, just like Sony missing their hardware forecast by a notable margin isn't shocking either. Nor is the decreased profit margin a surprise when Sony has had so many aggressive PS5 deals since July.

As for other consoles getting Sony games, it's a whole different ballpark. The history of the PC and consoles has been that the PC was commonly not perceived as a serious competitor among the console manufacturers who put their games on the PC. For Sony this has been the case since the PS1 when plenty of their third party deals blocked games from coming to other consoles, but not the PC. "The long run" is very ambiguous, it means different things to different people; can be one or two console generations, can be a couple of decades, 50 years or even more; so unless you become more concrete here, there's no point in bothering to address this.

Sure just like you can't today categorically rule out Nintendo games on PC either, it could theoretically happen (anything can theoretically happen), 5 years ago to a lot of people that would have been unthinkable for Sony but it happened. 

As for what I mean "in the long run" sure within 5-8 years, maybe. 

I don't think today people view the Switch and PS5 as direct competitors in the way say the N64 and PS1 and GameCube and PS2 were anyway. I don't think Sony does either. 

Could have consequences for handheld PCs like the Steam Deck though, future iterations will be able to play basically all Playstation 4/5 games portably presumably and have those games maybe day and date or not too far after will be interesting. 

I don’t think shareholders care about Sony porting their games to Nintendo and/or Xbox. They want Sony to cut development costs, ship games faster, and monetize them more.

Which is in line with the strategy they have been saying they were going to do for several years now. They will still make single player games, but you are probably going to start seeing more monetization in those. You are also going to start seeing a lot more multiplayer and service games coming out of SIE in the very near future that feature extensive monetization.

I think a lot of it is overblown.

Forget about profit margins for a second. Do you think Sony making around 1.8B in profit this FY is an unviable business model? That's with Bungie eating into their margins and PS5 hardware losing money when its discounted.

Bleh ... We are speaking of the worst kind of typical investors who aren't playing to the ideals rules of the video game market which shifted during the last generations due to the massive uptake in profits publishers had. Of course, they'll want diversification to make more profit and revenues in anyway possible disregarding any reason for the success of a platform.

Less we forget, these investors/shareholders can be pretty volatile in any case. Look at Nintendo which wasn't in their best form during the WiiU/3DS days but never changed the core of the reasoning behind the eventual success of the Switch, it's exclusives, hardware sold at profit and high margin on the sales of it's software because they dare not devalue it in the same fashion other publishers do.

Anywoo, the rumors and reports about an alleged report of the Switch 2 release just made Nintendo stock price plummet by 8%.
I can tell that it isn't the type of event that will make their core buisness shift because as reported by their latest financials, they're successful with their revenue and profit margins.

The one thing I missed in the reporting is the PS VR2. With last holidays being the first holiday sale season for the new device, I would have expected Sony to mention how it did. Or at the least questions in the QA financial briefing about it. I could imagine it was a money sink hurting those operating profits.

About cost of games. I can remember being baffled looking at the credit roll for Horizon Forbidden West. It just kept going and going and going. Not saying every one mentioned was a full-time employee on the project, but there must have been easy 1000+ people involved in making the game in some sort of way. A lot of overhead is needed to just manage so many people on one project.

They need to lower the budget and bloat of their big releases.

I thought it was interesting their president specified "multi-platform" specifically instead of saying just "making more PC games".

The other problem with the industry in general is if you've spent like 6, 7, 8+ years and hundreds of millions of dollars making a game ... we're getting to a point where it just doesn't make sense to keep these games locked behind traditional walled gardens.

What worked in 2005 wasn't going to work forever, it's kind of like Hollywood in the 80s, initially believe it or not there was resistance to putting movies on home video, E.T. didn't arrive on home video until like 6-7 years later, Spielberg initially said he would never allow it to release on home video, but by the late 80s, the VHS market was so huge that he had to relent and allow it to be released. 

Empire Strikes Back and Return of the Jedi took 3+ years to come on home video, then in the late 1980s Warner Bros. shocked Hollywood by releasing Batman (the no.1 movie of the year) the same year, in time for the Christmas holiday rush of 89 and it was a huge hit as a holiday gift. Ever since then, blockbuster movies started to release on home video the same year as their theatrical release, but believe it or not, this was not the case largely before that. Before that you'd be waiting years to watch some blockbusters at home. 

I doubt Sony is losing money on things like PSVR2 or the Portal. 

I don't suppose this means PC ports of Demon and Blood?