By the mid-80s the analogs were seen as last decade's sound for last year's people. They were immensely unfashionable, and by the beginning of the 90s they were being sold off for bargain prices.
The low end of the analog market had been captured by budget polysynths from Korg and especially Roland which had most of the sound at much less of the price.
The problem wasn't the cost of digital R&D, it was commoditisation which turned a high-margin super expensive boutique professional market into a low-margin semi-pro and amateur commodity market with cheaper, less exclusive and less prestigious products.
The high-end market essentially disappeared and so do its distribution and promo channels. What was left supported a much smaller number of companies.
All of the headline synth companies went under at that point, no matter what tech they used - Sequential, Oberheim, Moog, PPG, ARP, Ensoniq, E-mu, and even Fairlight and eventually Synclavier. As well as also-rans like Octave, Gleeman, Crumar and Siel.
Korg also went under and were bought out by Yamaha.
Yamaha survived because it's a huge zaibatsu with deep pockets. Even with the DX7 the synth division is a sidenote on its bottom line.
Roland are also a huge corporation - mostly immensely profitable while also having street-level cool - and weathered the 80s and early 90s with some functional but clever hybrid models at relatively affordable prices.
Around 2005 the boutique market started to reappear, but aimed less at professionals and more at now-affluent collectors and dabblers who "always wanted one of those", and/or are willing to drop $$$$$ on something spendy just to prove they can.
So you get hipster-toy module makers in the Eurorack space, wildly overpriced Veblen toys like the OP 1, remakes of Classic Brands™, and various clones and reissues in both hardware and software form.
It's very nostalgic and backward looking, and I suspect there will be another shakeout before the end of the decade.