Is the talent not vanishing backed up by data? The gaming industry has always been an extremely brutal industry, and I wouldn't be surprised if the low wages, long hours and zero job security permanently burn out some of the talent.
https://www.youtube.com/watch?v=s5qKN2Yxaok&t=1s
Halo went from <200 people making a game from scratch to >2k people making the same game on an engine (without multiplayer) - so the design scope is even smaller now.
I don't get how you can lower the scope, have 10x the staff, and still overwork yourself - I mean, I certainly think it's possible, but that speaks of colossal mismanagement.
I mean the graphics got better (not that anyone cares, people still play old games, if graphics were a true differentiator, people would say new games are better because they look better, but they don't).
This is very hard to explain - and so expensive it's actively killing the industry.
I don't have inside knowledge but have followed Bioware (given how many of their games live rent free in my head)
1 - 2017 they cut from 500 -> ~350
2 - 2023 went from 350 -> 200 that included a bunch of very senior people including the OG writer of Baldur's gate Lukas Kristjanson
3 - Early '24 cut down to 100 skeleton crew as the writing on the wall for DA Veilguard sales materialized (sold about 1.5m vs 3m projected)