Games don't have the generational differences they used to. They're mature now. Tech is rarely the blocker anymore. The Switch was "underpowered" at release and is even more underpowered now but the space of "games that would run well on the Switch" is still fairly unexplored, not because anybody is bad but because the space is so big now.

That hardware can no longer compete with platforms that don't throw away their entire library on every release is probably one of the first impacts of games finally maturing. My "next console" was a Steam Deck for partially this very reason, the fact that it came preloaded with years of previous acquisitions.

We're also just seeing the leading edge of the game industry having to deal with the fact that it now has to compete against itself. There's been a number of articles about how $NEW_GAME never even reached a peak player count of something like Skyrim. I think that's currently being written as a sort of a "ha ha, that's sorta funny", but it represents a real problem. It is not unsolvable; Hollywood has always faced this issue and it has historically managed to make money anyhow. But I think AAA gaming is only just beginning to reckon with the fact that they aren't going to get a "free reset" on every console generation. $NEW_GAME really is is competition with Skyrim now, along with a lot of other things. It's not a joke, it's an emerging reality the industry is going to have to grapple with.