Ironic for a company that published indie hits like Terraria and fresh mainstream games like A Tale of 2 Sons.
This does not reflect the whole gaming market but rather the failure of publishers to innovate well and make new things people like. Big publishers are risk averse and it's a common path them as they get bigger, and care more about shareholder value or venture capital. They won't take risks, and can't accept failures so they retrench. It's not a recipe for success as that end of the games market is already dominated by big publishers churning out annual versions of their mass market games.
A publisher like 505 r ally only has two possible futures on this road - go bankrupt as they can't compete or get bought out by a big fish who want their IP.
It doesn't say much abou the games market as it's actually very large, vibrant and varied. A publisher like 505 is not on the vanguard of the games market and like most people I had to look them up to even see which games they had published. This is just yet another company being mismanaged into oblivion and well beyond its hey day.
Yet it still managed to be fresh and, in my opinion, make the next big leap in what rpgs are capable of. Sequels aren't really the problem, and I don't mind them really—in a vacuum. The bigger problem is what 'sequels' are in corporate speak; making minimal effort and doing the same things over and over again, trying to profit off of name recognition alone. They don't see a franchise and think "Great, a chance to dive into this world and see all it has to offer and what makes it tick," they see it as a chance to make maximum $$$ while not feeling like they need to do much.
Right, but from the perspective of a gaming company CEO, it being a sequel is everything. You have to remember, these people are incredibly uninformed and shortsighted. Think of the dumbest person you've interacted with ever, and that's about as intelligent as the smartest CEO. They see that Baldur's Gate 3 sold well, and all they learn from that is that sequels are a profitable endeavor. They couldn't care less about any of the context that makes it a good game.