If you take these production costs literally, 343 Industries had lots to prove with Halo Infinite.
So you may see rising costs as generating a copycat mentality within the industry that stales popular features.
Cyberpunk 2077 was delayed three times before being released and did so in an unfinished and buggy state.
For the industry, this creates a precedent where game development is in a constant race with rising costs.
Image Credit: Square Enix/Final Fantasy XVI
Image Credit: Square Enix/Final Fantasy XVI
Image Credit:Halo Waypoint
Image Credit:CD Projekt Red