It's easy to blame Guerilla & Horizon but that's basically their experimental franchise. PC port, PS Extra and now Switch.
This is from way before on the agenda during the PS4 era play anywhere you want with Now which simply failed.
Shawn Layden trying Cloud gaming with Gaikei and losing billions is often overlooked as well as the fact the PC porting started under him. He iterated on it during WUPS podcast and the reasoning.
The irony is that Jim was core PS despite haters. He wanted to
stagger PC releases more and saw them as a competitor per FTC and not a believer of
Cloud in the short term. Improved Now into Extra as a sustainable GP alternative and actually has better Cloud
streaming
Hermen is simply going to follow Totoki's rule and what's being told. And the first thing that was told is profitability.
He will never have the carry and weight Jim did simply in the sense of what Ryan meant in business sense for PS. And if we go back to the FTC case, Sony doesn't sees Nintendo as a competitor.