There is definitely a mismatch between what people demand out of single-player experiences and what's actually economical to provide. Other than a few studios who built a reputation before costs got out of control (Naughty Dog, Bethesda, Rockstar, etc) no one can afford the risks associated with paying 200 people to work for 3-4 years. Things are going to need to largely retreat back to 60ish people working for 2-3 years, whether that's through significant advances in elegant, robust, and affordable middleware or whether it's from consumers just scaling back expectations.
I think about the one AAA developer I can think of who really broke into the industry successfully in the past decade or so, in the era of extremely high costs, and that was CD Project, who did it by basically leveraging an arbitrage opportunity around a highly educated but low-cost workforce in Poland, and maybe that sort of thing is the future? More developers popping up in low-cost countries where 200 people working for 4 years can still be economical. But Poland may have been a unique situation, both in that it had access to EU workers to fill in any necessary high-skill gaps, and that it is Western enough to make games that still appealed to the big Western markets. That sort of outsourcing gets harder when the demand for AAA is so tied up in narrative, which has a lot of cultural constraints on it. Chinese development seems to be taking off, but they have a large enough home market they have little incentive to chase Western tastes.