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Well, King makes almost twice as much money as Blizzard iirc, so I would say that they're focusing their resources in the right places.

Making $60 desktop games is just a horrible business to be in, the development costs are too high, and the return is too low. Why would you make a AAA title when you can make Candy Crush? It only makes sense to divert resources where the ROI picture is prettier.

maybe this way of thinking is why japenese developers have been doing so well?

I know that everyone is in for the money, but there's an undeniable difference in how they view the result of their work.

sometimes in western companies it feels like everyone is just sprinting towards a buyout / merger to cash out.

I think I parted ways with them when they went to online account required for a single-player game.

Company culture matters