There are plenty of games that don't do high-end graphics and are still very good, even games that look intentionally low res/quality like Valheim did very well.

Graphics are only really a thing for games that aim for realistic visuals in the first place, but even then it doesn't need to be so overly high in visual fidelity and pushing better graphics every time. The average gamer isn't going to care about being able to see reflected objects in windows that you can see in the reflections of puddles, or that a leaf from a tree has a diffused shadow 300 meters away. Yet a lot of these big studios are pushing this tech and stuffing it in their games.

Not saying that's a bad development, but they're creating a lot of these budget problems for themselves by setting bars so insanely high and focusing on side-stuff that only increase the scope of the project. Where small indi developers create masterpieces on a budget barely a percentage of what those corporations are throwing at their projects.