How is it good for the industry? There is no indication the industry is or will be better off than it was years ago. Established franchises are doing well, and thats it. Good for them. There is nothing beyond.

Established IPs that do shady practices are not doing well such as Fallout 76, Destiny 2, Battlefront 2,  and Battlefield V.

Established IPs that do things RIGHT are doing well such as Zelda, Smash, Red Dead Redemption, SFV , and God of War.

Newer IPs that are doing things right are successful such as Octopath Traveler, Horizon Zero Dawn, Splatoon, etc.

The entire point went over your head.  These IPs are doing better than they EVER HAVE, while those that do shady practices are failing and catching major backlash.  This discourages shady business models and encourages complete and full experiences out of the box.  That is why it is great for the industry as a whole.  Or do you prefer being sold part of a game and charged more money to complete the experience?

You didnt answer the question.

How is it helping the whole of the industry? All it does, it tells the industry "lets go with the same ol same ol. Ol franchise, popular genre..".

You fail to see the big picture, the persisting dilemma. The risk to produce a time/money consuming product and fail miserably in this line of business remains unaltered. We wont get Alien Isolation 2, because Alien Isolation was commercially unsuccessful, despite being a v ery good game set in a well known universe. Same goes for Prey 2017. Btw. whats Arkane Studios working on? More game development studios than ever go out of business on a regular basis, release schedules are so densely packed release dates have to be postponed to have better sales in the initial crucial months and ironically games you mentioned fall into the category of games as one reason why other games, single player games dont do well.

It only helps those succesful on the path they can afford to walk.

Mentioning Octopath, some small jrpg in 16bit style. HZD, developed by a Sony Studio with marketing Powerhouse in their back and the need of a platform holder to attract customers and a certain clientel with exclusive content. Splatoon, combination of aforementioned games and circumstances.

"Or do you prefer being sold part of a game and charged more money to complete the experience?" 

i dont mind story DLCs like in Spiderman. Story DLCs as in DeusEx MD not so much. Whereas MTX and "cancerous" business stratgies that come along with  them (Overwatch, BFV, PUBG, Fortnite aso.) i see as detremental long term.

I'd love to know how these games selling so well help me in gaining more quality RTS games, from a genre that's been widely ignored for years now. Last good AAA RTS was SCII and that was 20-10, nearly 10 years ago. How does Smash selling so well help me get more AAA RTS games?.

Of all those best sellers, only one franchise was not a sequel or preexisting property...Horizon.

I agree that gamers want all those things mentioned by the OP, but I'd argue that making those games is no simple task.

So even if publishers are aware of this "winning formula" (making a complete game that keeps the gamer coming back), making a good game or one that is even profitable isn't necessarily going to happen. These huge experiences for the most part still piggyback on the success of the IP.

So if a developer isn't up to the task of delivering the type of quality that Nintendo or Rockstar are going to deliver, of course it's going to be easier to nickel and dime their customers using the popularity of a preexisting property.

It's not a good thing, but in every industry, there are stinkers and there are winners. It's not reasonable to expect all games to be made at the calibre that these winners are, because resources (including talent) are finite.

It’s good for the industry when any game sells well. I’d like to see the receipts on all those games you listed “losing a lot of money”. Two of them came out like 2 months ago or less, hard to see how they could have lost “a lot of money”. Especially considering they are online focused titles with mostly rehashed content.

Gamers have always valued good games with good amounts of content. There’s a lot of fuss about microtransactions and how “single player games are dying” but all three console makers and lots of big publishers still put out tons of good, meaty games with single player functionality.

You know what would really make Smash’s sales great? If Nintendo took some of those profits and invested in a number of new IPs.