> And the game quality would suffer
The Witcher 3 was a pretty good game (Polish developers) - many would call that an understatement. The Uncharted series since 2 or 3 relied heavily on outsourced development (especially for art assets). Arma 3 was developed by Czech devs. These countries probably produce lower budget games on average, and don't have lots of existing infrastructure to leverage. But that makes what they have accomplished all the more impressive given what they were working with.
What makes you so confident in the class that developers in countries with lower costs of living are worse than ones in wealthy countries? Do you think that Polish or Bulgarian developers are on average worse than American ones, and it so do you have something to back up that claim?