There is a market for Parappa though. Sony knows this as I have walked into game stores and found Parappa plushies and collectibles for sale. There is also that spiritual successor out, Scratchin’ Melodii:
This is also without mentioning Friday Night Funkin’. With a modest budget, a new title could do really well. Hell, the team wants to work with Sony again, but Sony refuses to let them make a new title since the PS2. Nowadays the gameplay and character design teams are split up and have/tried to develop their own successors.
Project Rap Rabbit was one such case. It didn’t receive the crowd funding needed to be developed as the character designs were not the same as Parappa due to the split, but it was the same gameplay team. The character design team would work on Major Minor’s Majestic March for Wii, a shitty game that clearly captured the art of Parappa:
Basically, all the pieces are there for a sequel, a fanbase and dedicated team. I personally think Sony is just being stubborn as it wouldn’t hit the exact sales they want, and probably something about how Sony is taking a more mature, cinematic, direction these days. In other words, they believe they are making ‘real’ art these days.
While I am going to speak more broadly, The Golden Bolt put it well in his PlayStation All-Stars video. Sony needed to change during the PS3. While they might have won in the long term, the PS3 was a dud with a lacking identity and PS All-Stars was the symbol of how their fanbase was too strained to make anything out of the company.
Since the Last of Us and Uncharted were the biggest PS3 success stories, they have moved towards shitting out a plethora of story heavy games to create brand identity. Why they fuck the Japanese studios’ games while promoting Horizon is likely due to this mentality. The PS3’s failings and PS4’s success has made Sony autistic about uniformity in a vain attempt to create the same simps as the big N. Ironically, this is slowly killing them as unlike Nintendo, they cannot use nostalgia to draw in customers as Sony shat the bed on capitalizing on Zoomer nostalgia past R&C with their retarded hatred of the PS2 & PS3. Hell, they cannot even grab kids as their titles are made for adult Soys.
SSM gets credit for being a secondary developer on many titles including large IPs like Twisted Metal. They are Sony’s go to support studio when the talented devs can’t finish on time or Sony tells them to fuck off like what happened with PS All-Stars.