Maybe. But they're competing against developers that aren't subject to these limitations. Art assets often make up the bulk (50-70%) of the development costs of modern games. If one studio has to pay 3D modelers $50,000 a year and another only has to pay $10,000 a year (not to mention no healthcare, retirement fund, etc) then the former is at a huge disadvantage.
Outsourcing isn't a hypothetical. Naughty Dog started outsourcing art asset production to Asia with Uncharted 3. Music recording has been outsourced for at least a decade. Sure, the company hires experienced people (like art directors and composers) in house but the heavy lifting is done offshore.
Outsourcing isn't a hypothetical. Naughty Dog started outsourcing art asset production to Asia with Uncharted 3. Music recording has been outsourced for at least a decade. Sure, the company hires experienced people (like art directors and composers) in house but the heavy lifting is done offshore.