Problem is giant games like GTA, UBI, Bethesda etc…. sell high production open world games at the same $70. So a lot of studios try to replicate them with big scope to entice value gamers who prioritize quantity as a key factor.
Another thing about gaming too is that when you hear about devs making a new studio and the founders are all veteran industry people notice how their new game they need funding is always a big splashy game?
There's no turning back. They can only go up. Not too often you see these vets open up a studio and make indie games for $10. Too low brow. Those games are made by broke noname losers. Experienced workers from big companies can only make games similar to what they made before. That's a disaster waiting to happen. You'd think like any business, you'd start small and grow responsibly. But they go head first into a lake assuming there's no rocks. And if they could make big games at EA, it means they can make it at their grassroots studio. Makes no sense.
I've always worked at big corporations. Even my first job out of university was at a big company we all know. If I was to open my own business one day (I wouldn't), it would be stupid if I tried to replicate making shit like proctor and gamble or Panasonic. I'd start small and see how it goes instead of going balls deep in the first try.
As I said many times. gaming and tech has too much money and debt floating around. And too many weird egos. No wonder so many companies spend like crazy like money is unlimited. And why their corporate culture can be so toxic and volatile. You got a bunch of Wild West kind of people with a bag of cash to spend.