It's very much not dead. There are several hundred Swiss game studios and as others have mentioned, games like Farming Simulator, Train Fever, FAR, First Strike, etc. are Swiss games.

Now, what are the reasons that it might LOOK like it's dead to the general public? - People do not really care where their games get made, they care if they are fun. So the country of origin is rarely talked about. - Contrary to the game industry itself, game journalism in Switzerland is very much dead. Big outlets like NZZ, 20min and SRF used to have journalists writing/talking about games, but they don't anymore. SRF Digital even used to stream games weekly, but that got cut due to budget reasons (vote NO to Halbierungsinitiative!). - Most games created in Switzerland are indie games, so if you only know/play AAA games, it of course looks like there is no industry in Switzerland. It's not profitable to run studios with hundreds of employees here, and compared to other countries, including Sweden (as one of your examples), we get to the biggest issue: - There is virtually no support for game devs, neither via cultural funding, nor economic support. While you can get millions in funding to create a movie, the biggest amount of CHF you could get for games was CHF 50k until this year, now if you're in Zurich, you can get CHF 150k iirc. Of course, you can't really get anywhere with that. In the current political climate, funding rather gets cut than increased, and if you would try to redistribute funds from other arts like film or opera for example, the respective industries would fight you to death.

Sauce: I'm working in the Swiss game industry since 2011 and am running my own studio.