If people dont feel compelled to upgrade due to PC and PS4 ports, their revenues will suffer. Both physical and digital. Every person who decides to buy a PC to play PS exclusives is a person who does not purchase a $500 PS5, a $60 sub for the next 7 years, or pays for sony's 30% digital store cut. For PS4 owners, it's not as dire since they are still part of the ps eco system but every year sony delays giving their users a reason to upgrade, MS gives them more reasons to switch to them.
It goes back to my point about short term profits vs the long run. What Jim is doing is clearly working for them today, but a year from now? 3 or 5 years from now? The Wii sold something crazy like 80 million. early leads dont mean much in this industry. it's not a sprint, it's a marathon. The entire point of first party games is to give people a reason to go out and shell out $500 for a new console. They are actively discouraging that by making horizon and gow available on last gen consoles. It's weird because they finally have first party games that are literally system sellers in ways only Gran Turismo, Halo, MGS2, GTA3 and Zelda used to be, and they aren't taking advantage of that goldmine to sell more consoles.
They are clearly bullish about the sales of PS5 so ultimately it might not matter and Jim will be seen as a genius who led the PS5 to another generation win, but even that success will come at the expense of gamers who wont get the best from the best sony studios for at least the first two years of the ps5. similar to how the switch has held back arguably the best first party studios in the industry.