Why?
What's happening in this industry?
There's an argument that the industry tried to act like the tech industry with every increasing investment in technology, human resources, licenses, trademarks, and commissions. Creative innovation, however, cannot be forced by pumping more money into the system/industry. You can't expect creativity with every increasing deadlines and even tighter risk calculations because shareholders demand a certain percentage because otherwise they could invest in something different.
We always hear about technology advancements, like DLSS, path tracing, the PS5's SSD and the like but comparatively little about the actual art, or gameplay innovations. This works only for so many years until consumers realise they don't pursue that hobby because of the technology.
video games are in that hybrid area where technological advancements drive creative innovations. This happened a lot in earlier generations, but now, if you look at the most expensive games, they don't differ much from ten years older games in terms of gameplay. It's just a bit more refined and polished but cost tremendously more for the little advancements they offer. You can ride this train only so far and they start reaching the ceiling.
There's only one big player that doesn't play the game like many other first party studios, publishers and platform providers and that is Nintendo, who manages to even employ more personnel instead of laying off. They work fundamentally different than other major players in the industry.
I highly recommend watching this video on the topic: