They defacto threw out a working pipeline for a beloved product for no other reason then cost savings and project expenses justification. It was a disaster that basically destroyed bioware.
The procedural stuff was just a " while we leap of the cliff with no plan" let's make the cost cutters happy who wail because there "abandon working system" for completely different system that's working for a completely different usecase did not work out. Honestly for decisions this clueless and value endangering a whole executive floor should have been let go.
But gamedev usually means, all new faces teams, as the old one quits in lockstep. So it's very likely a bunch of youngsters running around yelling "premature optimization" is the death of all good things. Mistaking that with needing no optimization plan at all until game is almost done.
The terrorism history is not much more than a pretext though. The source of these draconian Laws are highly stratified societies, with inept elites for seeing troubled times and accidentally accelerating them.
It's realistic to be adopted cause it acknowledges the takeover of democracy by buisness. What good is a policy, when it in implementation a maiden pure but has no chance in hell to become real? Purity signals are useless, when constructing the signal network that runs society.