As you say, at some point you can't cram more $ into the product in a way that meaningfully affects the experience. Every area eventually experiences diminishing returns, especially within the framework of a realistic-ish multiplayer shooter. There is a kind of winner-takes-all effect to digital media, but this takes it too far.
It is kindof crazy how lethargic the big publishers are. For EA: 7 years after Hollow Knight to release a metroidvania, 9 years since Stardew Valley to release a new 'cozy' title, at this rate it will be 5 more years before we see their proximity chat game in response to Lethal Company. The trends are literally rendered passé by multiple waves of indie and A/AA games before they react. You'd think having a ton of money, and a giant pool of experienced developers, they could be fast-followers at least. Seems they are content to just push money into slow, giant 'summer blockbuster' type titles though.
Edit: Totally forgot, this is all about a battle-royale title, so assuming it releases next year: 9 years after Fortnite and 6 after the CoD equivalent.