All of this going on while Jim Ryan mysteriously steps down. Sony then names, a finance guy, Hiroki Totoki as interim CEO. Then they do the strange move of having "2 CEOs," Hermen Hulst and Hideaki Nishino, a creator and a businessman to be in charge. After Concord and the mess at Bungie, it's clear the spending at Sony got out of control chasing gaas. Some people were quietly removed, and checks and balances were put in place. My theory is, Sony shifted the marketing budget to pay whatever they needed, to push this game out, knowing they were going to refund everyone and take a lost. If they want to claim the entire budget as a lost on their taxes it's a lot easier if they show the game generated no revenue. I wouldn't be surprised if there has been a strong push from black suits at Sony, to get their established studios back to working on single player sequels to their big games(example: Naughty Dog's gaas game canceled and the entire team shifting all resources TLOUpart3). In the interim Sony will money hat chinese and Korean games to make up for lack of exclusives.
There's nothing misterious on a 56 years old executive retiring after 30 years in the company. On top of this he announed it around half a year before and signed important deals in the process, like the NC Soft deal or the 10+ years of CoD deal.
Totoki is not just a "finances guy": he's the Director, President, COO and CFO, Representative Corporate Executive Officer of Sony Group Corporation. Meaning, the guy on top of the SIE CEO and pretty much in charge of the whole Sony, particularly operations and finances.
Regarding the 2 main candidates to be the CEO, each had a very different profile with expertise in different things, so split SIE in these two groups and gave each one of each of them. Where they'll do pretty much what they already did with a few things more on top (Bungie and the non-gaming stuff of the SIE IPs for Hermen and marketing for Nishino).
Regarding Bungie, apparently they already needed a rework before being acquired. Bungie has a bit more people now than when they were acquired (this isn't counting the new team incubated). Meaning, apparently first they hired replacements and later cleaned the house specially after seeing that Nightfall underperformed, and they fixed it having a big success with TFS.
Regarding Concord tanking, games tank or get cancelled from time to time. Sony started to work on it apparently in 2018, before Hermen and Ryan, and the project started outside Sony. So maybe Hermen didn't bet hard on it in terms of marketing, creative etc. and let it fail to show a contrast with the projects he greenlighted -like Astro Bot or Wolverine-, clean the studio of assholes (make sure some will be fired) and bet harder and put more attention on the next Firewalk project, which would be the first Firewalk one started inside Sony and with him as the boss.
Hermen greenlighted a 2nd SP game for ND, and I bet also TLOU3 after he killed TLOU Online, which pretty likely wasn't greenlighted with him. He did cancel the mobile games being made at Japan Studio, fired whoever put them to make mobile games and did greenlight them Astro Bot for the internally developed team, and did sign Stellar Blade and DS2 for their 2nd party team.
He grew PS Studios -now also grouped with Bungie too- to now having more games under development, more manpower and more studios than ever before, with half of the games being new IPs. 1st party games released broke sales records in 3 of the 4 years he has been in charge. This generation PS is also generating more revenue and profit they ever had before, plus are breaking records and keep growing in basically all areas.