Not surprised, as USAFRet pointed out this has been industry wide. We've seen studios shuttered, more games than usual canceled late in development, studio buyouts followed by layoffs, etc. Plus what I've heard muttering from friends in the industry that also supports this conclusion as well with some of those gearing up back burner plans/projects just in case their job/studio is next.
The pandemic created a lot of demand in the gaming sector with everyone staying home yet still wanting to have a bit of fun and/or socialization. Studios jumped on it cranking out content faster than ever. But part of the problem beyond growing budgets and subsription models taking off(ish) is that over abundance of content. Heck my back catalog of games I have started and am wholly intent on completing yet haven't had time to do so...is embrassingly large. And don't get me going on the ones I started, ended up not liking but passed the two hour return window in play time because they started OK but never fully engaged me and I got bored.
With the number of 'good' and 'bad' games that launch increasing exponentially every year, it is basically impossible these days to play all the games you might be interested in. End of day the industry is eating itself from over production, skyrocketing budgets (inflation isn't helping) and subscription models taking off. Something had to give... Hopefully when the dust settles gaming as a whole will be better for it though I suspect things will get worse in the industry before they get better.