> You need to make a game that competes on quality with the studios that spend $millions on their apps.

No, for example Crossy Road or Flappy Bird made some good money with a minimal team and minimal investment.

Not $millions like those studios, but also the creators didn't spend $millions in marketing and assets.

> Thats not a very promising proposition to anyone considering making a game.

Risks.

That's why most people find a job and not make games for the AppStore/Play Store in their room.