There are more games than there are consumers now. Like Mobile phone crush, there can only be this many players.
IMO, most need to exit the indutry and some can provide services (already existed) not unlike automotive or cellphones, where the dev focus on creativity, and oursource things like generic asserts, voice acting, cinematic, marketing, promotions, motion capture to dedicated firms.
I think there is also a chicken egg issues. Game dev cost escalated massively (partly dev fault, partly nature of the industry), and consumer refuse to pay more or allow some help like in game advertising.
Do I like in game advertising, HELL NO, buit it it keeps the boot floating, I can compromised.
Inflated executives pay, especially in US, is "double issues".
First is obvious, the extra pay could help the rack and file employees, and also create the situation where many people refuse to pay more for game, not wanting to pay for the executives alfraedy high salaries.
Its not a good optic when you have millions dollars salary head telling us they need to cut stuff.....