Game studios close every day B.
That doesn't mean AAA gaming will cease to exist.
And why would they throw away an IP if customers still have interest in it?
That's like asking DC to throw batman in the bushes cause his original creators aren't working on him anymore
Because it isn't profitable as a long term expense. Why do you think there aren't anymore sequels from old Capcom games?
Evolution Studios (Driveclub) lost HALF of it's workforce after Driveclub. This isn't the usual 'contracted work, then leave accordingly' deal. No, half of the team gone because of an underperforming game. That's the risk of AAA development. If the game doesn't break even, the team is downsized or outright closed.
United Front. Sleeping Dogs didn't perform well. Downsized, and now UF is remaking those lost sales with a Free 2 Play open world action game.
Evolution. Driveclub didn't perform well. Downsized, and now the studio is focused on Driveclub 'as a service.' Making DC2 absent in the unforseeable future.
SEGA. A LOT of their products didn't perform well including Alien: Isolation. They're downsizing in the arcade market drastically and now focusing heavily on downloadable/mobile/PC titles.
These companies are making bullheaded decisions with lofty xpectations (fukking Sleeping Dogs selling THREE MILLION as an expectation lol fukk OUT of here.) and the devs are the ones to take the L, and lose their jobs.
WHY DONT WE EVER HEAR FROM THIS shyt FROM THE MID-TIER? Platinum makes bombs, still in business. Insomniac took a string of Ls after Resistance 3, still in business. Paradox fukked up with a couple of their games, still in business AND bounced back with Cities: Skylines.
Obsidian--mid tier developer. almost died after Alpha Protocol due to the ridiculous changes SEGA wanted for the games. IF it weren't for South Park and PoE, they would be gone.
AAA development is hurting VERY very badly, and you willing to be obtuse about it isn't helping at all. It's hurting so badly that Konami doesn't see it as a viable source of income anymore (their biggest moneymaker is fitness clubs in japan.) and now KojiPro is getting stubbed out.
You can see that for some genres that the high cost, low return method isn't working anymore. Fighting games, Street Fighter V is likely going the Killer Instinct route (low roster, periodic updates ala 'seasons' like a F2P game.) as hinted by leaks. MOBAs aren 't profitable as a premium product. RPGs and card games? Mobile F2P.
The landscape is changing.