It's such a destructive mindset, and it seems to me like indie games are hopefully on the cusp of re-demonstrating to the rest of the industry why it is so.

Art/luxury products depend on catering to subjective tastes to turn a profit. You need to speak to someone's perspective or interests, and are competing for their disposable income against all other forms of entertainment. Thus the wider the targeted audience, the harder it is to outcompete the rest of the market on "consumer interest" (no idea if that's the proper use of the term but it sounds correct for the context), the harder it is to even turn a profit.

Simultaneously, these corporations want an ever-greater magnitude of profit (aka growth). So they decide to target the widest audience possible, while investing as much capital as they can.

That's already an unstable balance of priorities. As soon as you start conceiving yourself as competing with almost every single other market on the basis of shareholder speculation, in terms of ROI, it's doomed.

You're not just shooting yourself in the foot, you're trying to do a Paul Muad'hib Atreides except because this is reality, not sci-fi, instead of drinking the Water of Life you mixed 10 grams of ketamine, 5 tabs of acid, and a fistful of meth into a blue Gatorade and chugged it in one go. All you end up doing is vibrating in place so hard you begin to slough off flesh and erratically disintegrate, like some sort of sad eldritch horror.

God do I hate corpos sick with capitalism.

To continue the Dune analogy, they really could use some ecology-derived thinking: specialize and find your niche (or help it emerge), and give back to the rest of the ecosystem so that it continues to flourish with you. Monoculture has a negative correlation between scale and sustainability, let alone ROI.