I had a specific developer - which is southern european, not eastern, my mistake - in mind.
I've seen publishers, devs, franchises and genres go down, and many didn't get properly replaced/revitalized. The spots are still vacant, and this probably won't change for a long time.
Honestly, not sure what dev you're refering to, but since you've mentioned RE...well, I remember back in early 90s how many people were enamoured with Alone in the Dark, what is considered forefather of later survival horror games like RE and SH. And then it fizzled out for some reason, to be replaced with...well, RE and SH.
One of my favourite genres, P&C adventures, got practically dead in near end of 90s - there were some high profile realeses like Longest Journey, and later Still Life and Syberia, but it took really long time for it to have renaissance, and now it's more than alive and kicking for quite some time.
Similar thing happened with classic ISO cRPGs of late 90s/early 00s, and it was long, long wait, but eventually there was a renaissance.
So i really think, even if devs fail, people who worked for those devs mostly find another way to make their visions come through, and new people who grew up, loved and learned from their designs pick up the mantle.