The gaming industry is not in trouble. The only thing in trouble in the overblown AAA gaming market, which has become too safe, gameplay and game design wise too samey with ridiculously big development teams, who can't justify their existence unless their game breakes even at 10 million sold; no wonder people are bored of it and the sales are going down.
AAA gaming has manifested itself as the true cancer of the gaming industry. Who the fuck are all these 300-400 people development teams? What do they do all day? Designing hyper realistic grass and horse anues? Why do you even need that many people? To develop the same-looking UE5 engine games over and over?
The sooner the AAA gaming market dies, the better. Like any industry, the gaming industry doesn't need unlimited growth. It would actually benefit from being smaller.
Gaming has to go back to the times nerds made game for nerds and not soulless product designers producing products for the biggest mass market appeal like it its now with AAA game development.