Are AAA games struggling because they try to appeal to everyone?

Hi everyone,
I’m currently writing my master’s thesis about the video game industry. My initial topic was quite broad: “Why does the video game industry seem to be in crisis? Is it actually dying?”

After reading a lot of industry reports and interviewing developers, producers, marketers and esports people, one thing became very clear: the demand for games isn’t disappearing. Players are still here. But attention is more fragmented than ever, costs are exploding, and competition for players’ time is constant.

This made me question the current AAA model.

AAA games are often designed as huge, high-cost “event” projects that try to appeal to the widest possible audience. But I’m starting to wonder if this “appeal to everyone” approach is part of the problem:

• Do AAA games lose identity and impact by being too broad?
• Is player fatigue and franchise fatigue real, and if so, why?
• Meanwhile, AA and indie games often target very specific audiences and seem to generate stronger engagement per player.

So here’s what I’m genuinely unsure about and would love your thoughts on:

👉 Do you think AAA games should become more niche and targeted, even if that means selling less copies overall — but building stronger identities and communities?
👉 Or is the blockbuster, mass-market AAA model still the most viable path for big studios?

I’m not looking for a “right” answer, just different perspectives — especially from players, developers, or people closely following the industry.

Thanks in advance for sharing your thoughts 🙏