Sony need to course correct immediate. Cancel what they havent already of the GAAS, repair relationships with Japanese third party devs and publish single player games from them( IE Fromsoft, Bandai Namco, SE, even Capcom) build new single player teams to revive old beloved PS franchises.
But why couldnt they do both? They have the funds. It shouldnt be them choosing one over the other. Im mostly a SP gamer but there are millions of people who play MP on PS
They have always made MP/Gaas games and with HD2 selling more than most games this year they arent gonna abandon it making MP games.
They just need to show more of the SP games they are developer and work on securing more exclusives and creating more.
As for 3rd party relationships, it seems like 3rd parties dont want to be exclusive so much anymore, they are better off buying ip’s, studios, a publisher or buy a percentage/ partnership more with studios like FromSoft etc