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Porting work isn’t necessarily demanding the same skill set that goes into making brand new AAA games. It’s not undercutting anything else from happening.
Studios like Nightdive specialise in upgrading games to modern standards and for one I’m grateful that at least that much is being done to preserve old works and exposing them to a new audience.
Not making new stuff is perfectly acceptable, studios with few or no game designers but a high technical level are much better used this way, recreating existing proven designs while letting their technical prowess shine, rather than wasting it on mediocre shovelware.