The scenario you're presented is how this situation worked in the past, but today the industry has changed into something else entirely.
But DLC->IAP/ads->live service is tempting to de-risk. Sure some behemoth publishers get greedy with it and shove it in games that have no business having those features in there. I just don't see those in and of itself as greedy.
To be fair to the other side of the argument, Hollywood has a similar problem, and have kept prices flat. Though big budget things have to be de-risked in the form of predictable-earning superhero movies (which can be used to fund riskier projects, but don't have to be). I just don't like games becoming too much like Hollywood, dependent on huge brands and celebrities to guarantee enough sales. The budgets and expected quality moat are already approaching it
https://www.statista.com/statistics/1285658/top-ranked-video...