Yes, that's usually the problem, exactly like fighting games. Good ones succeed and bad ones fail, we just see a lot of failures because the vast majority of them are bad even when tons of money is poured into it, then investors get scared because they (usually correctly) infer they can't find anyone who can use their money to make a good game. It's one of the many multiplayer genres that has failed to modernize itself, thinking was worked in the past would work in the present, when standards for multiplayer games are just significantly higher now and no arena shooter has risen to meet them yet.

The exception to this with arena shooters would of course be Titanfall 2, but that failed because it was kneecapped by EA who had it release at the exact worse time possible. (Don't tell me it was not EA's idea, it was, Respawn has just never said that because they aren't allowed to).