Wouldn't be smart to create so much self competition by flooding the market with so many games, even from just a single publisher. People wouldn't have enough time or money to buy and play them all. The business side would end up losing more money than it makes, which would easily lead to a death spiral of firing people into studio closure.

At smaller studio sizes of less than 100, one single studio in today's market could easily be generating 10 games per year or more. But a publisher might have 20 or more studios. That's 200+ games per year from just a single publisher. Now expand that to multiple publishers, and we haven't even mentioned the infinite indie games that release each year. Games already get drowned out of sales and thats with AAA barely releasing a handful of games each year. It would be much harder to gain any marketshare if so many more games were released in just one year.