Mario Kart is not a GAAS...Multiplayer games in general are not GAAS.
Yes, Mario Kart is a GaaS. Smash Bros and Splatoon too. Most GaaS are MP focused nowadays.
GAAS are games that usually include many micro transactions, season passes, battle passes, loot boxes, etc that entice you to continue spending more and more time and money to "keep up" with your friends.
GaaS are games as a service a.k.a. live service games. There are many different types, the only thing in common is that they are designed as a service, meaning they have a long roadmap of post launch (at least partly paid) DLCs.
Sony's profitability is pretty low compared to the revenue. In fact, it's been on a decline for a couple year and it was the lowest ever past quarter.
They explained in almost every fiscal record that it's mainly due to costs related to the acquisitions (mostly retention bonuses and I assume extra hirings for these teams, buying them a bigger office where they can grow, etc), which will ease next fiscal year.
Pretty likely one of the reasons of why they said that were going to pause the acquisitions during 2-3 year (mid term) was because they wanted to wait until these costs are over and they properly integrated the recently acquired teams before they move out to the next ones. To acquire more would have meant to affect more their profitability.
And on top of that, they released in this period many accessories including the platform that is PSVR2, which requires costs of R&D and marketing etc.
And well, let's also remember they also have a record number of games under development (more than 25 at PS Studios plus more than 2 at Bungie plus the already released GaaS that require content plus the ports).
Next fiscal year pretty likely mos these costs will be over or reduced, but they may release the PS5 Pro.
