>>715469107 (OP)Publishers are afraid of this niche in the Fantasy "audience demographic". If they go ultra realistic and violent they can tap into the Game of Thrones and dude bro crowd that loves blood and mud.
If they go fairy tale cutesy they can tap into the kids market, like Fischer Price Knights point and click adventure shit (a fond memory of mine).
But to hit that middle ground of colorful and fantastic fantasy worlds with some violence and darkness blended in is all but ignored by Western studios. The Japanese did it for a while and it's a common space for JRPGs to explore... but there's really nothing else that rides that middle ground...
Except of course the most successful fantasy game of all time World of Warcraft. Pretty insane that nobody has figured out that the fantasy game market has been completely devoid of anything that isn't extreme grim dark or foolish girly childishness.