The existence of the AAA industry has done nothing but damage to the medium itself. The inflated budgets too, so many good games have ben done at a fraction of the price of those bloated AAA games and they usually surpass them in actual quality, and they have also made very good money from it.
Seeing it from the bussiness perspective? It's pretty easy, I don't think anyone here is ignorant of what their plan or goals are, is just that we don't have to like it one bit. Specially if those actually result in inferior products so consistently.