This presumes that the closing of studios / layoffs will result in the same sort of funds used to pay for those sorts of investments are going to be recycled and available to new startup studios...
Also assumes that it doesn't result in people leaving the game industry as a consequence of career game devs deciding the video game industry is largely an untenable career path if any sort of job security and stability is a goal in your life...
...because that's why I left...
Started working in more general software industry work around 2012. The last game studio I worked for generated something like $8 million / day at its peak revenue point, but they still closed us down and let us all go within 2 years of hitting that milestone in the middle of a new project we were working on.
Haven't worked more than a handful of days crunch since, and doubled my pay as well.
Not saying I wouldn't have rather stayed because I didn't love the work, but I wanted to own a home someday and start a family, so I had to pivot in order to be a relatively more reliable bread-winner for my family.