Publisher's honestly are not lying. It's easy to villify them, but lets look at the reality of the situation.
Everyone will acknowledge, even players, that game development costs are way higher as the years have gone on.
This is not like Frito Lay trying to justify doubling the cost of potato chips post COVID, bullshit that those cost double to make.
So you have way higher development cost, which no one will really deny ... do you have sales that are way higher? Not really, it's the same number of people buying the same number of consoles every generation, that number is not increasing.
The other thing most gamers are clueless about is they don't even understand how games are financed. Understand that a lot of publishers were borrowing money for dirt cheap interest rates (free money) basically in the past. Now that interest rates are much higher it means if you take out a $100 million dollars to pay for development of a 5+ year project ... it's way more expensive with interest rates being much higher. No more "free money" for anyone.
In all honestly, the Capcom president said this and it's true, and I know people are going to not want to hear it, but game prices need to go up. They should be about $80+, and even that honestly is pretty low. That really only covers some of the inflation cost it doesn't really get into development costs being way higher. You can't increase the production cost of anything, whether it's a McDonalds cheeseburger or Nike shoes by multiple times or whatever and sit there and say "well I expect to never pay more than the standardized price I was paying 10+ years ago". That's just not realistic. When you go to see a movie at a theater are you paying the same ticket price you were in the year 2002? I don't think so.
Something has to give here. Layoffs are just a sign of a bigger problem the industry has.
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