But it's not only about AAA. Some others publishers are thriving by releasing AAA games. Like From Software or Nintendo. What do they do differently at Sony to make so little profits comparatively?
I'm not sure I would even be talking about From Software in the scope of a publisher the size of Sony. From is a publisher, in that they have published games, but most of their work product are games developed and published by other companies. Their last 8 games have ranged in scope from smaller titles like a 3DS game and a VR title, to bigger things like Elden Ring and Armored Core, and the remaster of Metal Wolf Chaos and Dark Souls. Some of those titles are, I think, outside the definition of AAA.
Nintendo also has a wider variety of budgets than Sony has. Something like Tears of the Kingdom is a big budget affair. Detective Pikachu returns and Warioware Move It are probably not.
To give my opinion, software lineup is behind the history of PlayStation dominance. The sheer breadth and variety of games has never been matched. That gave them the branding power they now have. I would say people tend to think of more kid focused games when Nintendo is brought up.
The problem is, Sony had that history of a diverse first party software lineup. Now they make Gran Turismo, MLB The Show, and 3rd person narrative driven action adventure games. People often complain that Nintendo just makes Mario games, but Mario has been in racing games, sports games, and 3rd person action adventure games on Switch, not to mention party games, fighting games, RPGs, and tactical strategy games. In just Mario titles Nintendo has a more diverse portfolio of games, and they make Zelda, Metroid, Pikman, Pokemon, and Splatoon as well.
Sony's history has given them the branding power they have now, but they only released Spider-Man 2 last year and don't have any more first party major existing PlayStation franchise games releasing before
April 2025. Why April? Do they have a game announced for April? Nope, it's the end of the fiscal year for them, and that's the scope of the conversation that the quote was taken from. Can you imagine if Nintendo had no games based on their big franchises for a full year? And that year was following a year where they had 1 big franchise title released.