While losing 100 million in the process
Just make ten $10 million games and make your $100 million that way. The simple fact is the 'we only need one to become the next Fortnite' strategy is killing studios in droves. Publishers are at risk of bankrupcy BECAUSE THEY WANT TO MAKE MONEY.
If they stayed poor, they'd be richer. It's the desire to make money that is making them lose money. Publically traded companies being what they are, they are legally required to make the most money possible so naturally the idiots in charge look for the fastest and laziest way possible to make as much money as possible, ignoring that developing a live service mainstream game is so retardly expansive that you could release 10-20 singleplayer games for the budgets these live service games make, produce 100x the content for these games, and reliably make more money because you are not going to be the next Fortnite. All those games you make will be dead in a year, period. The next big thing near always comes from indie or AA studios.
We are at the point where the desire to succeed has raised budgets too high for them to succeed, like a snake eating its own tail. Everyone agrees you need to spend money to make money, but no one who spends all their money is going to live long enough to make any of it back. The industry is retarded. Raising prices during a recession will KILL studios. They need to slash budgets to 1/5th of what they are AT MOST. Fire all the excess weight, trim the fat. Fire all DEI consultance. Fire all HR departments. Hire nothing but rapey college boys and pay them in free beer and pizza and have them develop your game for pennies on the dollar and fire all women so there aren't any harassment complaints or gay ass workplace drama. Women make everything more expensive because they are high mantainence. Hire dude bros. Downsize regulations. Do the work out of a garage. Tear down the offices, work in a warehouse and have the other half print the discs.