I really miss the old E3 Sony, They always seemed to step up their game for those events. I believe it is because they thrived on the head-to-head energy.
I assumed at some point with the number of studios they had that their pipeline would catch up to the point where they could show 3-4 big games a year, especially with some studios working on 2+ games, but they're just not there.
The obvious answer would be to add more studios. They could have done so with a complete purchase of Kadokawa. Between From and the other studios, this would have created a bridge to gap the holes in the pipeline.
If games on average take 5 years to develop and you want to have 4 games a year, that means you have to have 20 games in development at all times.
They really only have 14 primary studios and one makes only baseball games at least at the moment. If making multiple games stretches games out to 6-7 years, you need even more studios to fill the gaps.
They got nothing out of Firewalk, they closed London Studio and Pixelopus and they just canceled Bend and Bluepoint's games. That's 5 games removed from the pipeline. That's significant.
The last two remaining studios that they acquired that are working on games are Haven and Firesprite and there is no really good sign from either of them.
Dreams came out in 2020. We should have at least seen something from Media Molecule at this point, but I don't think they gave up on Dreams until 2022 or 2023, working on the PC port, that was also canceled.
I think SIE is feeling a bit gunshy from the studios it purchased, but it still needs to do something to fill in the gaps. These were mostly startups with a high chance of failing. The most disappointing was the misallocation of Bluepoint who could have turned out 1-2 remakes since 2020.