This is the same tired narrative a lot of publishers trot out when they try to justify things like lootboxes and microtransactions in single-player games and shoving pointless online elements into said games. Calling the costs of making games too high is just poor handling of the development process is bullshit, since we've seen examples of how single-player games with moderate budgets can be very successful in the current market place.
We don't even have to very far back to find an excellent example of this: Hellblade: Senua's Sacrifice, a game made with a modest budget looked great and achieved great success in the market, despite not being one of the so called AAA games.
The real reason the economics of single player games are "complicated" is because there's more POTENTIAL profit to be made in online games and with microtransactions. So of course they want to make all the profit, not just do well enough. If the publisher can't justify making single-player games because they are supposedly too expensive, then that's entirely their fault for trying to make nothing but big budget blockbusters and cultivating a landscape where every game has to look amazing to get mainstream attention.
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