>It should be noted that I don't work in the games industry though
Well there's yer problem!
The games industry is basically terrible - the management is full of people who don't understand the industry they're in and see their employees as cheaper-than-slave labor and their customers as open pocketbooks to take. In management's defense, nobody understands the game industry; it's ridiculously hit-driven and producing a "good" game involves taking on as much unmitigated risk as possible. The only risk mitigation strategy you can adopt is diversification - funding as many projects as possible. But that went away along with the PS2 when game development budgets skyrocketed and audience numbers plateaued.
Each one of the factors I mentioned above can be gone into with great detail:
1. "Cheaper-than-slave labor": Game studio employees are frequently replaced with fresh hires to keep costs down; expertise is a liability in an industry that remakes how to build a videogame every 5-10 years. You can survive this but it's at the expense of your own health and sanity. You will be abused, mentally and physically, by your studio for the privilege of working at a games company until you quit.
2. "Ridiculously hit-driven": Game studios can spend literal billions of dollars on a project nobody likes. Management wants to do this because games that don't screenshot well don't market well, so you need literal armies of artists to texture every tiny detail in these games and you need them to work 996 so the project ships anywhere close to on time. But that also increases risk which means we need the games to cost more, both in terms of up-front price and after-purchase DLC and microtransactions.
3. "No diversification": Diversification works well when your audience is large relative to your production costs. This hasn't been true since the PS2 era; most companies struggle to afford to make even one game that's up to modern quality standards - now you want to make hundreds of them so we can just "see what works"!? In fact, if you look at the libraries of, say, the PS3 to the PS4; you can almost spot the point at which publishers decided to just focus on one or two online games (which monetize very well) rather than tens or hundreds of projects (which are one-and-done things).
This has resulted in an extremely abusive working culture and I highly advise everyone I know getting into software development to not touch videogames with a ten-foot pole. Hell, I wouldn't even recommend it as a hobby: the "more, more, more, better, faster, and yesterday" mentality has even sunk into the people who play videogames. If your boss isn't berating you for not fixing up his fuckups fast enough, your customers will be literally threatening to kill you for having the balls to delay a broken game.
This has all been known since the early 2000s (look up easpouse on Wikipedia sometime if you want to know how much HASN'T changed); the entire games industry needs to crash and it needs to crash yesterday before any of this can be fixed.