Small and indie companies have their own problems and can also have games that aren't received well. In those cases it tends to put the company out of business

Small and indie companies have their own problems and can also have games that aren't received well. In those cases it tends to put the company out of business entirely, as opposed to just some people being laid off. I've worked for three small game companies, two of which shut down after a poorly received game and one that laid off 90% of its people and limped along for a few more years before shutting down. I'm no longer in the game industry (I am working on games in my spare time, though, but progress is pretty slow).