>more than double the amount of workers
>technology that would make developers in 2008 cream themselves
>still make a worse game
The issues in the video game industry are systemic. While the immense popularity of video games has driven growth, it has also attracted lower talent and fostered poor practices. Consider the number of "creatives" working on a single game, often sequels where most gameplay elements were previously established and refined.
By poor practices, I mean situations where numerous higher-ups pretend to contribute by offering guidance that sounds smart, driven by executives who believe this approach will lead to a better, more competitive game. Although game companies aim to minimize costs wherever possible, they genuinely believe these layers of management add value, and being so out of touch it's a given that they'll bite that. Compounding this, many industry professionals are not gamers themselves—they are drawn to the field by its popularity and perceived financial opportunities rather than a genuine interest in the medium. As a result, their design ideas are often flawed at best and disastrous at worst.
This leads to games developed by teams that are resistant to criticism—sometimes justifiably so, as casual players may lack critical insights, but this stance often backfires. Games end up being designed around "imagined opportunities" that haven't been explored, missing the core elements that made earlier successful games. The only real solution is a complete overhaul of the industry's culture.
Additionally, modern games are often bloated with content, driven by the misguided belief that more is better. This bloating requires a massive number of man-hours across various fields, with high base costs per hour. When you add incompetence to the mix, these projects become even more time-consuming and expensive, which explains why even relatively simple AAA games with seemingly clear directions can cost millions to produce.
That's a lot of random rambling, but hopefully it makes sense.