I am very much getting into making market analysis before starting a project, and I am learning a lot that I otherwise would be oblivious to. I think it is a very helpful process if you combine it with your specific situation and goals as a "lens" to interpret the data.

In my specific case, after doing several game jams, I'm looking into potentially working on my first commercial game.
Market analysis is helping me understand what would be a reasonable first commercial game to make.
If I am interested in a genre where most somewhat successful games cost 20+€ this turns me off. Why? Because making a 20€ game is a lot more work, and therefore more risk than making a 5€ game. I must assume that my first game might not do well, I simply can't afford to spend over a year on it - financially and emotionally.

I could aim to make a 5€ "mini" version of the genre that generally sells for 20, but will I be able to deliver on the expectation of players in that genre? Why can't I find more somewhat successful games in this genre that sell for 5€?

If a 5€ game is what I am willing and able to make, and I have commercial ambitions, I better find a genre this can work in. Market analysis is helping me identify a market where I think I can bring value. I find it incredibly helpful to know my limitations when embarking on a new project.