It’s their choice to continue to develop ever bigger super-tent-pole septuple-A games.
Look at all the amazing stuff in the indie space. Let your developers go wild and make neat games that don’t cost $200 billion each.
You could have so many test exclusives like the more fun and experimental stuff we had in the PS1/2 era.
You don’t have to give up the big games. Just don’t focus entirely on them.
Same problem movie studios have. They chase the “sure things” and just pump more money in to be “more sure”. It’s all more fragile than ever.
Yeah, that's the Nintendo model I mentioned.
The thing is the whole set of companies making games at Sony and Microsoft are completely built for what we call AAA games. Tons of middle managers, large teams of artists and visual effect specialists, a whole human pipeline built to sand off every single pain point in every moment of their game to make a good content tube. Those studios are incapable of just making a bunch of indie games. They would need to be completely reorganized to an insane degree.