because crappy games dont really cost that much
a publisher/developer will buy a game engine; that costs MILLIONS of dollars most of the time. But, depending on the contract or the lease, they can use it for x amount of times. So while they might make one BIG game, they can use the game engine for essentially any title provided it is in the lease.
Once your over that hurdle, you code it. Coders dont make a lot; out of college, a publisher will be like "Hey bro! Wanna make games!?!" and the fresh graduate will be like "OH! DO I!" and hop on over, only to realize A.) he will get paid 30k a year, and B.) he will work 60+ hours a week. Slave labor, pretty much. Same thing with level designers, concept artists (freelancer, usually...toss them a couple thousand bucks and you'll have all the fantasy art you could ask for).
Honestly, just look at PC mods for games; they are often quality (Counterstrike started as a modification, and was free up until a few years ago, as was Team Fortress Classic, Day of Defeat, etc) and as good as retail games, and theyre made on people's free time. Now just throw those people some misguided direction (a publisher) and enough money to [barely] live off of and *voila!* you got yourself a crappy game
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