The peripherals and ui are just one part of a platform.
A platform holder has only one prime directive - make the platform through investment, the upkeep, and innovation for it to be the place to be for clients and devs.
This includes investment in the hardware, the services underpinning the hardware and compelling experiences not available elsewhere.
The investments should always be considered a negative on the balance sheet. This also includes the software they produce - there is nothing wrong with creating loss leaders in the bigger scheme of profiting out the other end by working towards the prime directive.
The sales of the Sony titles compared to the behemoths of the landscape are not the final story. They create fanfare, they create a brand image and are a marketing device for the brand.
How much press coverage and fanfare does a 90% rated Sony title achieve? What is the value of that in marketing and brand health working towards a platform holders mission.
Did you catch the switch? How you handwaved away a monumental change in business strategy?
PlayStation has never operated its first party studios using a loss leader strategy. Their 1st party studios, through the history of PlayStation, have largely been successful entities. The studios that haven't been able to generate profit have historically been axed.
But now, all of a sudden, PlayStation Studios are going to operate at a loss? I'm going to need to see someone from PlayStation sign off on that first.
Software sales in isolation are a 3rd parties bread and butter, not a platform holders. This is the MS narrative now as they failed as a platform holder and subsequently acquired full fat publishers that only ever could work by selling wide. It is a disingenuous narrative that does not work as a one size fits all.
Let's give all relevant context though OK?
XBox, one of the three major platform holders, has essentially gone third party.
PlayStation is now going day and date on PC with 60% of their investment (GAAS).
PlayStation has ended their single player exclusivity and are now going to launch on PC.
Square Enix has recently made comments about moving away from platform exclusivity.
It's almost like the Black Knight from Monty Python. This fight is over my friend.
Here's what PlayStation is seeing that you're not.
The highest grossing videogame company in the world is a non platform owner in Tencent. Companies like EA, Epic Games, Ubisoft, NetEase, Bandai Namco...were little bugs to PlayStation 20 years ago. Now they're 1/4th PlayStations size.
PlayStation sees the trend of GAAS + 3rd party mega hits like Assassins Creed and Harry Potter and they find themselves at severe disadvantage. They know they can't keep operating like it's 2004 when their competitors are chewing up more and more market share.
PlayStation will continue leveraging their hardware for as long as they can, but make no mistake, the era of the plastic box is ending.