Except Group B's projects keep failing. And not just for Sony. This year has seen the still births of multiple live service games, which has resulted in massive financial failures and studio shut downs.
PlayStation (along with EA, WB, Riot, Ubisoft, Microsoft etc...) has this data. They've reviewed this data. They would like nothing more than to make more Uncharted, God of War, Spiderman, and Horizon SP games because those are safer and easier to do.
They're still pushing towards Live Service because that's what gaming has become.
You have to go watch those Civilization intro videos about the progression of mankind. Live Service represents space travel. Group A represents wooden sailboats. You don't win Civilization by building wooden sailboats even though they're safer to make.
Group A's projects at least sell decently well. They just need to get their budgets under control.
Group A is a shrinking market. Why spend 5 or 6 years making a game for Group A when Group A will be 20% smaller in 2030?