The situation for PlayStation in the West is very different from the situation in Asia. In the West PlayStation 5 software seems to be fairly robust, judging by the data we got in platform splits from countries like UK and Switzerland. Of course, the worsening shortages will have hampered PS5's software performance in the last few weeks.When you look at the numbers. All that adds up is the people who bought PS5s got them to play free to play games or games they already owned on PS4.
The free to play games might make Sony happy, loot boxes are big money I guess.. But from the point of view of retailers and developers outside that model the PS5 is a waste of resources.
Even for western developers, nothing has sold well apart from the typical ubisoft launch window stuff.
Overall though I would not say Western developers see the PS5 as a waste of resources, far from it.