Because it was a pandemic fueled rush. Everyone thought gaming was the best bet because we're all at home. Companies like meta, Microsoft etc.. grew astronomically on tax payer subsidies making it even better money. Other companies tried to invest or spin up game divisions.

Now the party is over, it doesn't even matter if these games are good or have potential. They put the sunk cost in the "pandemic's fault" spreadsheet, and take all the liabilities and costs from the expense spreadsheet. It looks fantastic on paper to investors, the real numbers dont really matter.