That the process breaks down in some cases doesn't mean they don't know how to prioritize. They clearly know how to prioritize well enough to make a wildly successful and enjoyable game. That doesn't mean no bad decisions were made over the last decade or so of development.

Like anything else, things will be as bad as the market allows. So I'd expect monopolies to do a worse and worse job of making good decisions and companies in competitive fields to do a better and better job over time. Thus the difference between TakeTwo and Facebook, and the need for lower cost of entry and greater competition in all economic endaevors where efficiency or good decision making is important.