They’ve not actually put much out in recent years that hasn’t been primarily developed by an outside team - in fact that seems to have been a fairly long standing trend aside from Team Gravity and ASOBI Team.
https://en.wikipedia.org/wiki/Japan_Studio
They’ve been under funded and under supported for some time now. I’m guessing whatever Team Gravity was developing was shelved when that team was effectively disbanded last year.
Sony have relied on deals with other Japanese studios like Capcom and SquareEnix. With MS looking to be more aggressive in this area internal investment and expansion was what was needed, not winding down.