Publishers play a key role in the game industry's ecology, and they have a hard job -- if they were afraid to shut down studios, cancel games, and dictate creative choices, developers would walk all over them and the publishers would go out of business as they keep bad games on life support and invest millions into art games that never see a return on investment. Major publishers have to obsess about the bottom line, because otherwise the game industry wouldn't be profitable enough to justify multi-million dollar investments in huge AAA games.
Take the fate of Origin as a case study. Origin made the Wing Commander and Ultima games. It was a great company before it was acquired by EA, and was ruined afterward. But it wasn't EA that ruined them, not directly -- EA gave them lots of money and the freedom to expand and take on more ambitious projects. Origin outgrew their ability to maintain quality control, and they ended up bloating into trainwreck mismanaged projects. EA gave the developers a lot of slack in their leash, and the previously solid company just strangled themselves with it. EA cracked down, ending the slide into ruinous decadence, but the golden age was over and would never come back. Now Origin is an empty shadow of itself, existing just to keep Ultima Online going.
Before digital distribution, there wasn't much of a market for independent game developers to work in, since they had no way to sell and distribute their games, which meant the careful and conservative approach of publishers strangled innovation in the industry. Now that independent game development is blooming, we're seeing that innovation in lower-budget games -- so you get huge budget AAA titles, experimental small budget indie titles, and a big surge in middle market developers and publishers, like Paradox and Stardock. Big publishers like EA are still stifling for those who work with them, but it's for a good cause -- their money grubbing is the reason why less established developers can get AAA blockbuster funding. And now that there are alternative ways to publish games, they can do this without stifling innovation industry-wide.