From an outside perspective of someone that has no real skin in the videogame industry:
AAA behemoth Western publishers are struggling to promote growth when growth is the expectation. Bloating budgets, shitty contracts for contracted workers, if you aren't Epic, EA, Activision, or a mobile studio, games as a service is a nightmare undertaking that isn't sustainable.
Japanese studios seem more mixed or less predictable I guess? The issues and challenges faced are similar to Western studios, with differing flavors and measures of problems. Seems like Japanese devs focused on non AAA experiences are moderately successful due the Switch and PC.
Indie devs seem to be thriving in regards to potential exposure. If you're on Game Pass or you get decent word of mouth, there is a chance of success and a greater chance of people acknowledging what you made.
