That seems like a reasonable argument, but if it is correct, then why do you think the problem hasn't been solved through the market?
Presumably *some* companies would not crunch and put out products of comparable quality (or even better quality if crunch is a net loss in productivity). It would be significantly more attractive for people to work at such companies, so they should be able to attract more elite talent, further raising the quality of their games and their competitiveness. I understand that it takes time for these processes to happen when there are entrenched misconceptions, but it seems like we have been hearing about these issues in the games industry for many years.
I think we need to stop looking at the game development industry as a specific sector and compare it directly to other software development, and in that case, the market has generally solved this. There are more companies now paying rewarding salaries with good benefits that do not expect that kind of working environment, and they produce higher quality software with fewer bugs and
it sells better.
The game development sector of software development has a culture problem. It's insular in hiring; largely hiring people who are passionate about games, and the culture of crunch gets instilled in developers. Most of the managers in game development come out of those development environments, and they double-down on the concept of crunch.
This is one reason why I'm usually happy to see non-gaming companies invest in the gaming sector, because it's going to be one of the only opportunities to break the crunch culture. When Amazon, Facebook, and other tech companies
that have a work life balance start producing games, and when they produce high quality games that sell well, it'll be a shakeup to the traditional, siloed game development culture.
I also think that as independent publishing becomes easier and software distribution stops being controlled by a handful of publishers, suppliers, and sellers, we're going to see the model move towards more reasonable software development. The publisher->developer relationship in the game sector encouraged that deadline-driven system, as big publishing houses farmed out their development work and encouraged developers to produce as much as possible on as tight a deadline as possible, and use the developers' passion for creating against them. The publisher model has already been rejected by thousands of developers, and it's only going to become more common.