@ivesen
The answer is consultancy firms and diversity hiring.
Consultancy firms skyrocket costs.
Performance is worse because companies hire based on minority status instead of qualifications and merit, so less competency.
The cost cutting is just old fashioned corporate greed. Nothing new there.
Things seem to not add up because you assume dev studios work the same as they did in the 90s, that they have the same kind of employees, the same kind of business practices, that the tech environment is the same. They are not.