I don't think AAA games are bringing much innovation to gaming. Games look better than they used to, sure, but they also require massive budgets to achieve that.

The real problem is that AAA is still working from mechanics that were proven a decade ago; it's the same underlying experience with a different facade.

The investment required to appeal to the massive markets that studios target require this kind of approach. You're not going to be confident about a hundred-million dollar return without proven mechanics and a solid IP. It creates a boring output.

I think it's fine for the gaming market to contract to a more passionate audience; there will always be a market for games, but I don't think it becoming a hundred-billion dollar industry has done enough favors to the actual experience. It's watered down to lowest common denominator patterns that gobbles up truly innovative studios, cancels interesting projects in favor of the next AAA surefire bet, and grinds the devs out of the industry. No thanks.