There's a lot of coasting on previous successes going on, yeah. Japanese companies are trying to put a big name on something to make up for lack of hardware or a short development cycle, but that has just brought down the name of popular titles, such as RE5, Castlevania: Lords of Shadow, the new Silent Hill games, Super Mario Galaxy 2, Final Fantasy XIII, etc.
There will be a lull in a series, with some horrible game getting greenlit and a full release with all the bells and whistles and then flopping horribly. After that, the company will frantically try to figure out what's wrong for the sequel. If the sequel does even slightly better the company will say,
"whew, thought we were in some real trouble there, but the brand shined through so we're OK forever",
...and go right back to their previous practices. Resident Evil is a prime example of this. Between 4 (which had a long, healthy development cycle after 3 didn't do so well) and 5 (which was rushed out because, hey, the audience came crawling back and they'll buy anything now) there was a huge difference in quality and length of development time. Development time is the entirety of what seperates awful games from great ones, and the industry still doesn't seem to get it yet.
There will be a lull in a series, with some horrible game getting greenlit and a full release with all the bells and whistles and then flopping horribly. After that, the company will frantically try to figure out what's wrong for the sequel. If the sequel does even slightly better the company will say,
"whew, thought we were in some real trouble there, but the brand shined through so we're OK forever",
...and go right back to their previous practices. Resident Evil is a prime example of this. Between 4 (which had a long, healthy development cycle after 3 didn't do so well) and 5 (which was rushed out because, hey, the audience came crawling back and they'll buy anything now) there was a huge difference in quality and length of development time. Development time is the entirety of what seperates awful games from great ones, and the industry still doesn't seem to get it yet.