On top of said layoffs and giant companies eating dirt, it also feels like on the other hand, small and mid-sized companies are thriving. You hear about little commercial success from one to twenty guys in a shed every month now, like Pizza Tower, Ultrakill, Cruelty Squad, Robocop: Rogue City and most recently Palworld, among many others, and these companies are rarely any kind of powerhouse, "AA" at best.
Not to mention there is now the absolutely abysmal launches of the first "AAAA" games, from Forspoken to Skull and Bones, which single-handedly prove that burning so much money into a single project, especially considering the dev hell Skull and Bones went through, just isn't sustainable at all, unless your games series are literally so engraved into society itself, you simply sell just by its name no matter the quality you deliver, like Call of Duty, GTA, or Pokemon.
Honestly, I'm all for it. AAA stopped being a mark of quality and turned into a red flag. This market shift can only lead to more quality games.