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Well the gaming industry was killed by mobile games in my opinion. They make so much money from micro transactions on shitty games that are just designed to keep us addicted. When the PS2 era was around, even the PS3 era there are games coming out all the time. Now it feels like big games come out every 5 years instead of 3 a year. I'm sure I'm just missing a lot of games because I'm not in the environment that keeps me up to date as much, but I feel like I'd still catch wind of something.
Why make an epic game that with in depth detail and good story lines when you can make 10x as much money having no story and half the work.
The key is to ignore AAA and focus on indie. Look at the last year: Helldivers, Hades 2, Terra Nil, Deadlock, Planet Crafter. Deadlock is the closest to being AAA, but Valve isn't exactly EA.
The quality required to launch a successful AAA game now just takes more, but the prices don't go up significantly so same staff more work...