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Square Enix share price drops amid claims Final Fantasy 16 didn’t meet ‘high end’ expectations
(www.videogameschronicle.com)
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Capcom was guilty of this 10-15 years ago with the infamous "Capcom test" where they would release a small project or re-release a game in a franchise they were floating around ideas for a new entry in, and if the small game or re-release didn't sell basically like a new AAA game, the franchise didn't get the new entry. This was part of how the company was basically reduced to only Resident Evil and Street Fighter for a time. Fortunately they eventually snapped out of it, probably when they realized you can't make the kind of money you used to make when you're effectively killing off all but two of your IPs due to stupid sales expectations. Square Enix will probably hit that point eventually as well.
Feels more like general human behavior, and less specific to only making games. People can get quite lost in those ways. But as you've said, I'm glad they've snapped out of it. Just in time for me to get a remaster, Ghost Trick! Not exactly groundbreaking here, but it ain't SF or RE lol.