I feel like the business model that is failing is the games as a service model. Sony is sticking with premium single player experiences and great single player games are still successful.
That is not a perfect analogy to utilize as it is not fast in a sense of profits and it takes too much money to implement. Look at the games on the top charts every year, they are not 200 to 400 million dollar budget games with one single player experience.
They are multiplayer experiences with consistent income such as COD NBA Madden Fortnite Apex etc.. Single player games is not a pole a profit minded business should live on. The attachment rate doesn’t make sense to put so much into a game bro.