"Sony currently has more internal studios than Microsoft and Nintendo combined. There is little doubt that Sony spends a ton of money on building its in-house development studios. However, according to an ex-Sony employee it seems like Sony may not really care about selling a lot of first party games all that much.
Of course Sony cares about selling first party games to a certain degree, but the company may not care if its internally developed games do not sell a gazillion units. David Jaffe, the man best known for God of War and Twisted Metal dropped some hints as to why he loves working with Sony on first-party development."