I think the worst part is the author even points to freaking Minecraft and Roblox, both were indie titles when they first launched, and also compared triple-A titles to a live service game and Epic's tech-demo-turned-Roblox-clone.

Honestly it reads more like they set out to write an article supporting a given narrative and carefully tuned their evidence to fit that narrative.

How about some studios that aren't hurting and don't fit that narrative? SCS software which makes Euro Truck Simulator 2 and American Truck Simulator hasn't released a new game since ATS's launch in 2016 because their business model is to keep selling DLC to the same customers, and invest that money in continuing to refine the existing games. Urban Games has openly stated they exist solely to build the best modern Transport Tycoon game they can, releasing a new iteration every few years with significant game engine improvements each time. N3V Games was literally bought out by a community member of one of it's earlier titles when it was facing bankruptcy and simply exists to refine the Trainz railroad simulator game. Or there's the famous example of Bay12Games which released Dwarf Fortress (an entirely text mode game) as freeware and with the "agreement" that they'd continue development as long as donations continued rolling in

The answer isn't a move to live service games as the author suggests, nor is it to stop developing high fidelity games but simply to make good games. Gaming is one of those rare "if you build it they will come" markets where there's a practically infinite number of niches to fill and even making a new game in an existing niche can be extremely successful whether that be due to technical differences, design differences or just differences in gameplay. RimWorld, Dwarf Fortress and Banished all have very similar basic gameplay elements but all can exist without eating eachother's market share because they're all incredibly different games. Banished focuses more on city building, RimWorld focuses on story and your colonists ultimately escaping the godforsaken planet they've crashed on, and Dwarf Fortress is about building the best dwarf civilization you can before something ultimately causes it's collapse (because losing is fun!)