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Not at all surprising. It's not a bad concept, it's just it's only going to appeal to certain types of people, and it also encourages people to play just that 1 game. So sharing customers with other games isn't really possible, it's kind of all or nothing.

Making a bunch of new ones to compete with the well established ones (and generally being pretty low quality) was never going to work. You're not going to steal customers from better games, and people who aren't fans of live service games aren't magically going to start liking them.