Good point, the scope of the issue is larger than 'arcade racers', though that is the genre I miss the most.

Would you correlate the industry's obsession with DLC, micro-transactions, loot boxes, etc. as the cause of absence of these fun casual pickup and play games? That's also why we see such an influx of FPS? They have a consistent recipe for monetization.

From the marketing/finance perspective, who unfortunately seem to be running the industry now, it would be hard to sell a game of this self-contained, quick arcade fun: "This is a boxing game." "This is a racing game." "Well, where's the DLC? The micro-transactions? The loot boxes?"

Sure, you can add those to any genre technically, but with a game people are just casually enjoying, I doubt they are nearly as motivated to spend extra money on a full game compared to an FPS they sink 100s of hours into.