That is backwards thinking to say that the graphical quality of games is ultimately determined by the non-gaming stockholders.
If the stockholders in question are non-gamers, then they neither know, nor care about such technical aspects so long as the producing company continues to post profits and growth.
What next? Stockholders are ultimately the ones who determine how "fun" a given producer's games are?
No. It's the people playing and buying them who determine what sells, whether it's dreck or quality product. The companies are only responsible for keeping production costs in check and producing projects in time to maintain profitability. Stockholders will follow by investing in the companies with the strongest financials or most promising upcoming product line ups.
There are no "suicidal moves" being committed here if the games, regardless of how they look, or what demographic they're targeted at, continue to sell, even if they're being "snuck by" a less savvy demographic that isn't as discriminating about what they play so long as they're having fun. There is no dictating what a player/consumer enjoys playing.
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