/vr/ - Retro Games

So how did Falcom manage to create so many genre defining games like Ys, Dragon Slayer, Brandish, etc. with a ton of talented people who were behind them and yet somehow never became a big force in the gaming industry and is now basically today producing games that are a shadow of what they have produced in the past? I would think that Falcom would've managed at least to be something like Squaresoft or Enix before they merged during the "golden era" of JRPGs but it seems they never got to that point at least in the west.
So I am asking this question here because I assume that the answers/reasoning to this happened during the retro period of the company. It seemed unlikely it would happen during the "modern" middle PC era where they made games for Windows in the 90s-00s and obviously not in the modern era, which is out of scope of this board. I would get no response if I were to ask the regular boards/threads so that is why I am asking here.
Is anyone knowledgeable enough about the history of the company and industry in Japan and what happened? Thanks for any response.