Yeah, either Sony's lying or this is correct. Idk.
Sony's in-house Japan stuff was super tiny for the last 5+ years. If you don't count games they helped out on or remaster ports, and just the games they actually made. I think the only game they developed fully was Knack II?
Astrobot was by Asobi Team
Hot Shots Golf VR by Clap Hanz
Last Guardian by Ueda's Team
Demon's Souls PS5 by Bluepoint
Gravity Daze by Project Siren
Like Sony could be not lying and the article could be correct if Japan Studio is essentially a tiny developer at this point that just assists on other developers games and maybe is shrinking further?
https://en.wikipedia.org/wiki/SIE_Japan_StudioOr maybe Team Siren is going out because they have nothing after Gravity Daze 2 bombed? Asobi Team seems pretty alive right now and apparently is a western/Japanese hybrid studio.
Also Team Ueda is dead.