Really? What other paths are available for game companies? Any examples?
Take Nintendo and Mario/Zelda/Metroid franchises. You spend years developing quality titles that you rotate through to avoid saturating the market. Probably the easiest way to do that is to actually develop more than a single franchise, but still, throwing as many slightly modified versions of your original game at app stores as fast as possible is definitely not the way to build a long term business.
Take Nintendo and Mario/Zelda/Metroid franchises. You spend years developing quality titles that you rotate through to avoid saturating the market. Probably the easiest way to do that is to actually develop more than a single franchise, but still, throwing as many slightly modified versions of your original game at app stores as fast as possible is definitely not the way to build a long term business.