I worked in the games industry for a short amount of time and have a few friends still in it (less and less as the years go by) so that's what I'm basing this o

I worked in the games industry for a short amount of time and have a few friends still in it (less and less as the years go by) so that's what I'm basing this opinion on. Anyway, a big part of the efficiency issues with AAA studios is they generally get fully or close to fully underway on a design that mostly goes into the trash before launch. So they aren't really developing one game, they're developing several with varying amounts of overlap and completeness. The development of Doom Eternal is a high-profile (and very successful) example of this. This is also why the industry is unfortunately fueled on crunch: sure it took 4+ years to deliver the final product but much of the final game shaped up in the last 6-12 months. It's a miracle more games don't need year+ delays. From what I've seen, indie studios tend to spend a much larger percentage of the development cycle prototyping and iterating before going into full production. They do this because they can (less overhead from idle staff) and because have to (they can't afford to spend years spinning their wheels). It's much more efficient but it also limits scope (which has some big downsides).