It's a real issue. Why do you think so many studios and shut down and layoffs are frequent in the industry?
Also, devs typically don't set the price that stores sell games for. If anything, Shadow of War was so successful that selling it for $25 now wouldn't hurt their profit margins at all.
There's a problem of funding games that work as a service, that's a real matter to address. However, much of the "service" on a game like Shadow of War is fixing problems they should have dealt with before launch (I shouldn't have to fund making a game work after I paid $60 for a working game) or additions of paid content. Were we talking Battlefront 2, where they have removed the $50 DLC pass, then there would be a question of how to fund additional content that they work on. However, the cost of games is also met by the profits. There are more gamers than ever before, so the increase in costs is balanced by the increase in buyers. Plus, as digital has become a more common purchase method for console users, the profit margins per-unit have gone up, as used game sales aren't as plentiful and costs like the physical packaging, shipping, storage, pressing, and retailer cuts are removed from the equation.
Again, companies aren't going broke here like rocks. Go look at the money EA pulled in last year, it's insane. A LOT of it is from digital add-on content, be it a pass or microtransaction, but even if you were to remove that, they wouldn't be losing money.