Sure, the death of the live service hype plays a role, too, but in my view it is mostly due to the gravy train of cheap money coming to a halt: Lots of companies are scaling back because they had funded themselves with loans while laundering profits through tax havens. Gaming companies are not much different from tech companies and media companies in this regard. Those are also in hot water ATM and fire people in order to stabilize their cash flow.
At the end of the day, gaming companies are going to invest far less in the future. Games such as “Spider-Man 2” and other AAA titles with exorbitant budgets will become rare. This has been a trend for years.
Thus I am rather certain that 2023 was one of the last years where we have seen a strong line-up of high quality, high budget titles alongside indie success stories.