It’s worth noting the vast gulf we are talking about here between the “self funded” indie studios and even A games, not even AA, just A.
The self funded indie game made by one person in their spare time that 200 people play (and occasionally a standout hit that 8 million people play) really isn’t under contention here. We’re talking about the responsibilities when starting a business.
We are not talking about making an AAA game, an equivalent of an MCU film (as those are limited to the deep pockets of large companies).
Most companies that aren’t making AAA games, are also taking funding because people have to make rent, and workers deserve to get paid a wage.