Smaller studios are pretty much our only source of real gaming nowadays. Companies like Devolver Digital. Too bad guys like them don't have the money to back AAA production values, which is the area where we notice the lack of quality the most.
Actually, it's good thing that they don't have the money... The more money you risk, the more you'll be restricted. For each ambitious AAA that title flops, some people will lose their job.
You'll need a crazy person to risk the company/investors funds doing something totally new. It might succeed and be a huge hit, but if it fails, say goodbye to investors for the next few years.
Well, a good type of crazy, but still crazy...
I don't think most of these true gamedev companies work with investors. Like Steam. There aren't any stock shares to buy.
Steam still develops games?
Anyway, you might be right, I saw "financial year" reports for some publishers (like Square Enix) and assumed it was the norm to have investors.