Earlier quoted context omitted.
The "no longer works" comment clearly refers to the business model, ie. ignoring the quality or popularity of the product itself and just looking at the balance sheet. The gambling (microtransaction) model is enormously more profitable than the classical "just sell a game" model. Elden Ring was spectacularly well received and has sold millions of units, but it's "only" a game. There's no casino in the back, and there…
Maybe I misunderstand you, but if the "no longer works" comment refers to the business model as you say, then the person you replied to is saying "no, it can still work as a business model — here's an example." It may not work as well or as easily , but I don't think that's the point being made.
Business models that are lower-risk and higher-return are systematically preferred by investors. Games are expensive to make. FromSoft has been successful enough to stay in business for now. They’ll always be in competition with studios that sacrifice product quality for profitability. Many studios literally cannot afford to do things their way.