Profitability can only matter as long as the ecosystem is sustainable; otherwise once the floor collapses there's no more money to be made. A game can be profitable, but when the entire team that made it is laid off or furloughed before launch there isn't a team anymore to follow up. Eventually those people leave the industry and there isn't enough capital made by your average worker to fund their own gaming studio, relying on investors or the rich to parasitize their work in order to create more games.

This is part of the reason why we see endless games as a service despite 90% of them failing. Teams have to do the bidding of the rich, but the rich don't know what's 'fun'.