Severing your relationship with a generation-defining artist because they had one whiff that only brought in $140,000,000+ in revenue seems shortsighted, even if you actually did lose money on that entry. About what I would expect from the MBA-driven economy, though. Your golden goose has shit out 10 golden eggs for you, then it lays one regular egg and you try to kill it. Except you fail and somebody else gets your goose instead.
Really odd indeed, many of the Sony executives used to be relatively "It's OK to fail once, you've proven you can output stuff given resources", but seemingly there is a new Sony now where not obsessively cutting costs and doing bets isn't part of the culture anymore. Sad to see.
The W in MBA stands for Wisdom!
Kojima has a history of overspending by trying to make grandiose but weird games. And while they performed well, MGS4 sold less then The Last of Us or other big hits. I think that Kojima's games are games that people talk about more than they play. Probably MGS5 is the only one that actually "plays good".
Sony also presumably has a lot of visibility into the project, and it was already being framed as "genre-defining." I've loved various Kojima games but especially with the other exclusives line-up that Sony has, I can understand this is just too much risk for them.
It remains to be seen what egg will be laid in this case, how many golden ones may come after, and how many end up on Playstation anyway.