That's true. They've discovered that strategy works since they can use their strengths (concentrated capital, business knowledge, lawyers, distribution system) to profit off of their competition and destroy them at the same time. It's a pretty terrible outcome for players since it destroys small studios which in the past would have used the funds from their previous success to develop more ambitious creative projects. Now those future products get managed to death and are less artistically interesting because they can't rock the boat.