Yeah their release window certainly did them no favors though last year we saw tons of movies that I'm sure studios felt like were safe bets do poorly or bomb. There were a few exceptions (Barbie, Oppenheimer, Mario, Guardians 3, etc) but so many big budget films did poorly.
I do think in general audiences have been moving away from theaters for a variety of reasons. The high costs not only of a ticket (where a single ticket can cost about the same as a month of a streaming service) & concessions, audiences having access to higher quality 4K HDR TV screens in their homes that are good enough for most people, the speed that films come to paid VOD and streaming services and the sheer amount of entertainment options people now have all play a role.
I know personally I don't see that many films in theaters anymore. I prefer to watch movies on my 4K TV at home. I have a popcorn maker and can make popcorn at a tiny fraction of the cost of buying it at the theater. I can start the movie and pause it whenever I want. And while the visual and audio quality of streaming certainly isn't anywhere near a film it's honestly good enough for me.