>>717232371 (OP)Multiple things
>RecessionShould be obvious. Between the economy swinging wildly because the powers that be want to make easy money off of the stock market, alongside constant and unpredictable tariffs, we're in a recession, and it's gonna get worse, and all the companies currently around are run by people who remember the last recession and are prepping hard for it.
Seriously, why do you think Sony said "no" to Bandai Namco basically prostrating themselves and begging to be absorbed before the Chinese got to them?
>Bloated MarketAll the big publishers want their games to sell tens of millions of copies. The issue is, only a handful of games can sell that much, sort of like how every MMORPG wanted to be WOW, but obviously people will only have so much time so most of them will fail to actually be WOW (that example also applies to live service titles).
Some publishers recognized that and pushed for live service, which could (theoretically) make the same amount of money (eventually), but refer to the WOW example. Maybe 5 of them will be successful a year, while the other 50 all crash and burn.
>Gaming Market is Shrinking Simple reality.
Phone games are still the dominant force. Most people are playing free titles that they occasionally spend money on rather than titles that have a gated entrance fee of $60, or $70, or even $80.
A good example of this is Dragon Quest, people still view it as some titan of Japanese games, but its market share has shrunk considerably since 2017. The latest major title, the DQ3 remake, barely managed to sell 2 million in 2 months, a feat the last major title before that, DQ11, accomplished in just two days on two far smaller platforms (PS4 and 3DS) with ONLY the Japanese release in its launch numbers.
And if you look at the demographics, Dragon Quest is primarily played by people in their 40s-50s. Since DQ11, it had shifted nearly a full decade in age demographic with no new blood.