I mean, if employees had limited contracts from the beginning because they are only needed for a limited amount of time it would give them enough time to plan ahead and line up their next gig.

There naturally are positions in game dev that are not needed the whole time. Filling those with freelancers might give both sides better planning stability. Of course that necessitates someone making a good plan. And it’s also a plus if they don’t have to commute around all the time.