The premise of this article is wrong. It should say “Live Service” gaming. In the article itself it admits that Arc Raiders was a hit and it’s because it’s a “live service” game that isn’t ran as a live service game. It’s just a fun multiplayer game just like Halo 3 or old Call of Duty. If games were still made to be fun instead of over engineered money extractors then there would still be plenty of room for hits.
But capital doesn’t want a decent return on a hit. They want a money printer like Fortnite and so they’d rather take bigger risks to hook and abuse players into gambling addictions and forever recurring revenue machines than just make the good games that players are asking for that make their budget back and then some