This could very much represent troubles not just in video game development, but project development in an investor-driven market entirely.
Everyone is focused on short-term wins and profits - so they can demonstrate they're a fantastic manager making incredible things. They hire 1000 people, then show the grandiose things they made with those people in 2 years so they can take more investment. But the way creative work goes, there are far better ways to play that lottery - they just don't involve as much active management, and are far less showy.
As a publisher, you could just start 50 small studios of only 10 employees each, with occasional external support as needed to each one, and give all of them 5 years to develop. That would equate to the same or much lesser cost as some of these gigantic multi-outsourced projects, but it means investments are left for longer. And of course, few of them would be a "Hollow Knight" or "Minecraft", but just enough of them would likely succeed to pay for all the others.
You can see similar concerns in R&D and other similar fields across industries, that give randomized and unpredictable benefit when every manager is watching every quarter's earnings.