I understand that "hitting the jackpot" and having one game making billions a year is every company's wet dream. However, it's very clear that consumers just don't want that.
Sony wasted their entire PS4 success and complete hype for the PS5 due to them trying to make a live service game happen. The reason the PS4 succeeded, was not because the Xbox One failed, of course that gave them a huge advantage, but it was because Sony created a constant flow of great games, accompanied by a constant flow of third party games. Which in turned continued their PS3 success at creating several new and successful IPs.
This time, Sony's PS Studios is practically dried out. No announcements, no events, no games. You might say that they have released amazing games like Spiderman 2, Ratchet and Clank, etc. but by this time on PS3 and PS4 lifespan, they already had much more games and new IPs. Where are the new IPs this generation from Sony?
I believe it was in 2022 that Sony announced several games, and what did all have in common? There all were Live Service: Helldivers 2, Concord, Fairgames. It's like Sony is trying to become Ubisoft.
Xbox also is trying to make Gamepass work. While it's understandable that they focus on a way to make money since their consoles have failed to sell, their first intention is so that the consumer doesn't have any control of whatever they purchase. Sony, Microsoft, Ubisoft, EA, etc. want to make the cake and eat it, too.
Nintendo's huge success should be their wake up call to notice that traditional way of gaming is what people want. Why else would the Switch sell more than 120 million consoles? Everyone is complaining that games have become so expensive, but do you think that Mario Kart 8 Deluxe, which is the best selling game on Switch, or BOTW were $300 million budget games? Of course not! Nintendo is spending a much less than every other company, and selling 10 times more.
While it would be so awesome that a company has a billion dollar game, they haven't realized that GaaS games are the exact same thing as Netflix in the following regard: Netflix was successful because it had practically EVERYTHING. Once everyone wanted a piece and removed content to make their own service, it fragemented the market and it didn't work. ONE live service game works, having 30 live service games doesn't. People can't play all of them, and if one guy spends $500 on one game, he won't spend $500 in each of the 30 games that exist. But somehow those companies believe he will!
They also tried to make gaming become like mobile when mobile was so successful, and what happened? It wasn't possible! The same is going to happen to live service games. All of this is affecting their financials, it's affecting employees and consumers, but they are unwilling to back out.
Gaming needs to retract a lot. It need to become smaller again. They all started making open world games like if every game had to be a GTA, and that's why it has become so expensive. They believe that games now need to be AAA Hollywood productions, when Nintendo is proving them wrong since 2017, and I bet the Nintendo Switch 2 will be as successful for this same reason. Other company that has proved them wrong this gen is Capcom.
I remember that many players started complaining about 8 hour games during the PS3/360 gen. Maybe this is why companies started to make open world games. But right now, is not about making games shorter, but they need to be more compact. Not every world needs to be 3,000 miles wide.