Movies used to be the only game in town; now there are actual games and the gaming industry surpassed Hollywood a while back. Besides, blockbusters have always been profitable, but with so many other entertainment options these days, viewers have choices they didn't in the past.
That Michael Bay movies continue to make big bucks is a travesty, but that's today's market. I'd much rather watch Man from Earth than any movie he's ever made, but one can't deny his movies make execs lots of money by being dumb and going for every cheap laugh, big explosion, overdone effect he can think of.