The “too big to fail” narrative is a bunch of bullshit
Demons Souls
Astros Playroom
Returnal
Ratchet and Clank
Kena
Sifu
Little Devil Inside
Etc..
Ignoring the fact that half of those games arent made by Sony first party studios, these arent really games I would consider AAA. We are talking about games that were far bigger than indie games no gave a shit about. Ico, SOTC, The Last Guardian, Death Stranding, Days Gone, Detroit, The Order, Until Dawn, Bloodborne, Warhawk, MAG, Socom. These are not the kind of games Shu will be able to greenlight as head of indie games. This is all on Herman, and unless I am mistaken because of Sony being tight lipped like they are guarding nuclear secrets instead of running an entertainment company, Sony has not replaced any of these games or studios.
I am not even one of those guys who want to play Mario, Zelda and Metroid until the day i die. I want them to go and do new IPs, but what I dont like to see is Sony cut relationships with studios and cut down teams to focus on studios that are simply not going to be able to churn out games. They didnt last gen and they wont this gen. Bend, SSM, PD all released a total of 1 game last gen. Sucker Punch released 2 and they barely made the end of the gen. They are due for their next game in 2026 if history is any indication.
Sony relied on those Japan Studio games to fill in the gaps. This is the argument in this video. They relied on KojiPro. They relied on Sony Bend which was literally their only first party AAA game in 2019. in 2015, they had zero first party titles. The Order, Bloodborne and Until Dawn were all third party studios making Sony IPs, and Sony killed the relationship with all those studios. If you take out DriveClub from 2014, Infamous is the only Sony exclusive that year. if you take out Knack, PS4 only launches with KZSF. Let's look at what the PS4 AAA lineup would look like without these studios.
2013 - KZSF
2014 - Infamous
2015 - Nothing
2016 - Ratchet, Uncharted 4
2017 - Horizon, Uncharted Lost Legacy, GT7
2018 - GoW, Spiderman
2019 - Days Gone
2020 - Dreams, Miles, TLOU, Ghost
Thats it. 3 years with just one AAA game. (Thats MS levels of bad)
1 with ZERO games. (worse than Microsoft)
2 years with just 2 games. OK at best.
and 2 years with 3-4 games. Literally 2 great years out of 8.
Clearly, their first party AAA studios arent equipped to do it alone. Which explains why Jimbo was trying to go all Phil Spencer a la Rise of Tomb Raider and paying off companies to keep third party multiplatform games off of Xbox.