The Market has shifted. The games don’t sell the platforms anymore. There’s too many really good games coming out everyday. People chose their platform and play the games that come to it.It took me a while to accept it but once you do the path forward is obvious. Sony isn’t satisfied with their game sales on their own hardware anymore. They’re actively seeking other avenues to grow sales because the truth is their total install base hasn’t really surpassed where it ended up on a system released over 2 decades ago.
It’s dubious if they’ll ever grow their system install base past that number again. There’s only so many people willing to buy these high end consoles and in those two decades that number hasn’t budged much.
Once you start seeking growth outside that platform because it stagnated you can end up with a situation where that potential customer base and its growth is a better opportunity than holding that content exclusively for your own even timed. You can hurt a game going viral by not having it available where more buyers are.
Hardware is not profitable. A customer that doesn’t fully buy into the ecosystem is not a profitable customer. No one who’s really invested in Sony/Microsoft ecosystem are gonna change platforms because some the games that would be “exclusives” end up on other platforms.
They can make lots more money selling those games to people who don’t want to invest in their ecosystem wherever they play games, instead of limiting their software profitability in order to force sell hardware to “bad” customers.