Well, Sony is basically abandoning the Jap audience really. It seems to be going for the West and jumping at it because of Californian infection.
This keeps getting promoted by clickbait outlets but it's not true by any means.
Their games made by western studios were bought up in higher amounts than what Japan studio was doing in Japan. Gravity Rush's Series Lifetime sales in Japan were beaten in a week by Horizon's opening sales in Japan itself. it was closed not because they were abandoning Japan, but because none of their games were selling up to par even on their home turf. Look at the best selling PS1,ps2,ps3, and ps4 games put out by sony. Only Gran Tourismo sold in any decent amount until the PS4 hit and they now have multiple first party titles selling in the 10's of millions which was a first.
People misunderstand what they mean by third person cinematic game. This extends to 3d platformers like Ratchet and Clank, Metal gear, Death Stranding, Monster Hunter, games like Yakuza and Final Fantasy 7 Remake, God of War, Horizon, and the Soulsborne games. The company views any game that has a third person camera, high end graphics, and voiced dialogue as this. It's a very broad definition, it doesn't really get down to gameplay specifics. But games like Killzone won't be something they're looking to expand upon.
The whole deal with Kadokawa includes all their game studios outside of Fromsoftware and even extends to publishing houses for books like Yen Press. It's a pretty major thing because it goes beyond what companies like Disney have done. This combined with Aniplex and their other studios as well as Streaming services like Crunchyroll, gives them a massive exclusive promotional platform. Warner Brothers originally sold them CR with deals to give HBO max(which is WB's streaming service) live action shows. Crunchyroll will be getting shows like Cold Steel that are being funded by Sony itself. In turn these will also be supported by any and all upcoming games.
What's basically happening is that they're doing what Nintendo did in the 80's and early 90's and have core franchises they will be promoting through other forms of media. You have companies like Capcom and Bandai namco who have popular series who's anime and merch rights are now heavily tied to sony.
basically all the elements that are in place could give us something that exceeds the 16 bit console war. Because Nintendo is doing similar with Theme parks and movies for their franchises as well.
TLDR: you're going to still be getting your weeb games.