There's an element of truth in that, but also there's the fact that as a developer, if you have to choose between
a) shipping on a new console with a smaller install base,
b) shipping on an old console with an established user base,
c) shipping on 2 platforms at once
Then option (c) is only possible if you reduce the game to the lowest common denominator(with option option (a) becomes more appealing 2-3 years after the fact).
Nowadays the difference is less significantbetween PS4 and PS5 (or Xbox One and Xbox Series), but it's still a non-trivial amount to maintain; it would have been vastly more difficult with orders of magnitude in performance (between a PS2 and a PS3), or different programming paradigms (PS3 cell vs PS4 x86).
Then option (c) is only possible if you reduce the game to the lowest common denominator(with option option (a) becomes more appealing 2-3 years after the fact).
Nowadays the difference is less significantbetween PS4 and PS5 (or Xbox One and Xbox Series), but it's still a non-trivial amount to maintain; it would have been vastly more difficult with orders of magnitude in performance (between a PS2 and a PS3), or different programming paradigms (PS3 cell vs PS4 x86).