Making terrible decisions, such as investing in distractions for your company and consumers, and then letting your workforce pay the tab.. is the thing that is not great for society.
Who is the "we" here? Because the profit margin not being high enough is certainly not a problem for consumers. The only people who should care about that are the company's shareholders and "shareholders" certainly isn't synonymous with "society".
I think people often forget that in a society we rely on companies making and serving things. They make our food and our medicine and build our homes and make our games. It's a good thing when their finances are healthy. It's a bad thing when they form monopolies and rent-seek.
This is madness and it doesn't make any sense besides the one case where you pursue a monopoly.
All of this has nothing to do with the consumer of the product besides the fact that he'll get a worse and worse product while simultaneously being forced to pay more and more. Enshitification is aresult of this "healthy" business culture.
Because if they didn't make a return on their investment, they would invest their money elsewhere. When you have money you want a return. You can invest it into games, or cars, or phones, or mining, or healthcare. Whatever you invest it in, you want to be justified for your risk because you can lose money. Sometimes you can lose all of it. If you're really risk averse you just put it all into a bank account on low interest. A lot of European investors do this, which is why their technological innovations are falling well behind the US.
If you want more games with better support, we all benefit if they're making a profit on their investments.
I told you very plainly: fewer games with worse support.
But the point is locking up money in a 3% margin business doesn’t impress investors.
So you either need to improve the margin with lower costs or higher price (or both). Or bail from the market entirely and put your money in something that makes more money.
Many of those developers may not have the job elsewhere, or job paying much less. They now have the experience working in a proper software engineering environment.