There's a reason why Nintendo doesn't spend anywhere near what Sony spends on game development. Sony is like Nintendo and Valve combined. An industry leading publisher of games AND a hugely successful platform holder running a highly lucrative store for 3rd parties. Valve has the store money, but doesn't make games. Nintendo doesn't have the same level of 3rd party revenue from their store.Definitely the former, which is basically Nintendo. They are their own money maker and can only blame themselves when it goes wrong. That should be Sony's goal because there is a clear risk in the 3rd party strategy now we see how quickly they can be bought up
Its why Sony has grown into such a big business. Their store fuels their product development. They can always delay their own games and spend enormous amounts of money on development (unlike Nintendo) because that CoD, FIFA, etc royalty money is reliable every single year.
They lose their store revenue from 3rd parties, they lose all their risk free revenue. So you'd see a reduction in investment and a hedging towards even safer investment. Its why Nintendo doesn't make new IPs.