I think the best answer is AAAA+ scale projects. AI has destroyed the demand for something that can be produced in a few months. The "meso" scale of game development is extremely difficult to work in. Constantly walking a tightrope between too easy and too hard. Rockstar games does seem to have the right idea. They can remain viable by simply never reducing their feature scope and spending unlimited amounts of money.

Perhaps enough indie game studios could align their thinking at the same time to accomplish a similar outcome. In any case, pooling of talent and resources is probably the only way to compete now. The individual developer simply cannot keep up despite being able to do more than they ever were before.

If you seek evidence of Jevon's paradox I think you may find it here. Albeit in a very undesirable form. Even if I can now do 100% more work per unit time, my prospective customer is demanding 300-400% on top of that in terms of the final delivered experience. The water level has gone up everywhere and continues to rise rapidly. Even outside of game development. Deliverables that would have elicited reverence from the business twelve months ago are completely unrecognized now.