At the time I was hired in '89 or so they were doing away with that practice. "New developers don't get royalties any more."
But, it was a good business to be in for a short time. I'm not sure if Microsoft developers ever enjoyed royalties.
Who did this benefit? Not the government, they lose taxes as now the contractors have to incorporate (filtering your income through an S-corp allows you to deduct all sorts of expenses). Not the contractors who now have to maintain and run a corporation.
It's always the corporations who benefit. Corporations are largely owned by the massively wealthy.
What would happen instead is that more actors and writers would be willing to work with you because they knew they'd get a fair share of the whole deal.