It's over for Sony.
First, Sony abandoning Japan to favor a declining West. Sony closed Japan Studios, and sold its Tokyo holy-land headquarters (2013).
Second was going all-in on the West right when it started its massive decline (post 2012). Sony invested hard in its Santa Monica studios, and went really fucking hard on California. The problem is, Sony went all in on the west right as the sun started to set on its culture.
Japan Studio was not a great studio by itself, but whenever it teamed up with another great studio, this team would shell out masterpieces after masterpieces. Demon Souls and Bloodborne came out of both From Software and Japan Studios; Gravity Rush, original titles that pushed the creative bounds and kept a variety of people hooked on Playstation were pushed to the side for Druckmann's Naughty Dog (which is different from the OG Naughty Dog that had Amy Hennig in it), Santa Monica studios and Horizon. They went all in on the west while disregarding its own roots.
I have heard of speculation that Sony is porting many of its exclusives to PC because it has already given up.
With Soyder-man 2 being its latest fuck up since Last of Us 2, its time to face the reality that this company may not be here soon. They insist on putting all their chips on a decaying west and the fuck-ups may be too much to come back from.