This is exactly what the guy in the video argues: the publisher changed their model to have more stability, in contrast to e.g. the high risk of the movie industry. So I agree, that this is the reason the did it and the reason we have less games per year. However, it is unclear to me if this is really the only path one could follow. I can still remember the little game called Blood Dragon, kind of a Far Cry spin off. 10h of fun for small money. Could the publishers have reduced the risk also by going the opposite direction and release more smaller games at a cheaper price, which maybe even share the same base platform as in the case of Blood Dragon to reduce cost?