I don't know. There was a time where you NEEDED sports games to survive and somewhere along the way, EA became the only company in tried to produce certain games. Capcom pretty much owns the fighting game industry with Street Fighter. Activision and Call of Duty are THE go to online shooter for many gamers. Rockstar leads the industry in immersive open world games.

But somehow the Switch is doing great without top tier support from any of them so... fuck 'em.

Not even the 3DS, PSP, and DS releases? Damn, that's harsh!

To be fair I don't portable game, so I can't speak about the 3DS/PSP/etc. I will say Octopath was solid, nothing amazing, but solid. Either way, DQ11 was superb, one of the best rpgs I have played in a decade.

But Super Smash Brothers and Mortal Kombat are the most popular fighting games this generation, and Tekken is as popular as Street Fighter in terms of competitive traditional fighters. 

I basically feel the same way.  I said Sega, but Square Enix is a close second.

Yeah I get that, fair enough. I guess to be fair there is a difference between internal development teams and multi-branching studio subsidiaries, like you said. That actually makes me wonder, is Capcom more comparable to something like Nintendo EPD or Ubisoft? They are a very big publisher like Ubisoft but I think most of their teams are internal. Wondering because they'd be the personal pick for the one that effects me.... that or PlatinumGames.

I took it as a company that can both be a publisher and a developer. In which case I think Ubisoft is a likely candidate in terms of how it affects the AAA market. Though companies like EA would also be there as well. 

Hmmm... learned something new today. I think going exclusive to PS4 hurt SFV but (while I knew Smash was always a mega seller since at least the GamecGam days) I thought Tekken had a foot in the grave and I underestimated how well Mortal Kombat and even Injustice were performing.

Mortal Kombat and Tekken sell better than Street Fighter nowadays, and Smash outsells both of them. And the Switch got MK, and has a sort-of Tekken.

As for sports, other than baseball, which is dominated by a first-party game now (Sony's MLB The Show), Nintendo never was big into sports, and 2K does at least support them with NBA 2K. Fun fact: in 2018, NBA 2K sold better in the US than Madden did. It's too bad that Nintendo doesn't talk with Konami about bringing PES to the Switch.

I had a specific developer - which is southern european, not eastern, my mistake - in mind.

I've seen publishers, devs, franchises and genres go down, and many didn't get properly replaced/revitalized. The spots are still vacant, and this probably won't change for a long time.

Honestly, not sure what dev you're refering to, but since you've mentioned RE...well, I remember back in early 90s how many people were enamoured with Alone in the Dark, what is considered forefather of later survival horror games like RE and SH. And then it fizzled out for some reason, to be replaced with...well, RE and SH.

One of my favourite genres, P&C adventures, got practically dead in near end of 90s - there were some high profile realeses like Longest Journey, and later Still Life and Syberia, but it took really long time for it to have renaissance, and now it's more than alive and kicking for quite some time.

Similar thing happened with classic ISO cRPGs of late 90s/early 00s, and it was long, long wait, but eventually there was a renaissance.

So i really think, even if devs fail, people who worked for those devs mostly find another way to make their visions come through, and new people who grew up, loved and learned from their designs pick up the mantle.