Yeah, anime/manga blew up everywhere, especially around the early aughts in large part thanks to things like Sailor Moon, Dragon Ball, and eventually Pokémon.
When things blow up like that, suddenly smaller but decent series look like trash in terms of numbers and companies can't help themselves but chase the numbers. Especially publicly traded ones (watched hundreds but not into the anime development like I am games - I'd assume in some cases it's present though).
So a bunch of them fall to the wayside and over time the bigger ones are still chasing bigger numbers while things also die off, no matter how popular they are at their peak. So it falls to A.) cutting costs that you really can't cut without cutting quality so you can B.) rush them out ASAP to see those ever bigger numbers.
This is where Masuda has also brought the main series of games though more for B by his own admission which causes A to happen since quick turn around means less spent on development while idiots will allow you to gouge them for full price dev work.
For animation A was supplemented with digital animation techniques which, unless you're working on some huge lifelike CGI project, helps save time and thus money while also allowing stupid shit that you can't do when doing it by hand that brings down the quality.
At this point anime has mostly become either stupid big shit with low quality so it can be pumped out at almost 50 episodes a year, mid quality stuff mostly full of fanservice/meming that'll go on for 5 years at most, or bottom barrel low quality stuff that flash animations surpassed circa 2002 (which are often things that sadly really deserved a better shot at life but it wasn't going to keep going for decades and make all the money so a shit studio picked it up for pennies and spent less than that making it over the course of 2 hours).
Companies like TPC have boatloads of money to spend on cool shit, but are afraid of the risks which got them there, essentially.