It is a cycle but how long it lasts and how much damage it does is unknown.
It helps to know where this all came from, with a lot of reading and research here is a
very crude summary.
1) Soviet Union collapses & western pro soviet marxist intellectuals in university despair.
2) In USA extreme far left intellectuals take marxist doctrine from the ashes and build a new one called "Critical Social Justice Theory".
3) Basically they swap capitalism for race, so instead of the rich being oppressors anyone who is white now the bad guy, they use distorted views of USA history to justify it and by extension the west too.
4) This movement stays in the extreme edges of society up until the classic liberal order collapsed in the 2008 global economy crash.
5) Rather than press the reset button the elites of the west papered over the cracks, this made things only worse allowing for extreme ideologies to spread as economic inequality spread like wildfire but left other factions of society unaffected.
6) CSJT activists begin to take over universities and schools in 2010 and have been spreading their cancerous ideology ever since, these are what are creating the woke mobs.
They use harassment, bullying, violence to get their way, radicalize minority groups, turn student unions into secret police and suppress any discussion of what the CSJT movement actually stands for.
The abandonment of the mostly political neutral stance of video games and wider corporations is by design of the CSJT movement, taking over media outlets both old (New York Times) and new (twitter), various institutions, its all part of the goal to bring about a "cultural revolution" and replace classic liberal democracy.
A lot of USA progressives have been taken in by CSJT and do not realize just how dangerous and authoritarian it is behind the fake mask of tolerance and diversity, same goes for political establishment types who would rather criticize the backlash against CSJT then actually face them down. Twisting the meaning of things is another CSJT tactic by branding anyone who would take them on as a nazi, white nationalist etc.
Thankfully a lot of liberal academics are now finally waking up to this danger and are banding together to try and stop its spread,
New Discourse is one of the best places to learn just how insane and perverse the CSJT movement is from an academic point of view, another is
Quillette who actually have a
piece up on Pepsi and their embrace of CSJT and how serious is it or is it a fad.
If that's too high level watch
Joe Rogan interview James Lindsay from new Discourses and he spells it out.
All of the above basically explains why the woke mentality is spreading through games, if the push-back against it is successful then eventually in time with the passing of generations it will fade.
It's largely North America that is the most affected by this so expect games from this region to continue to be the most woke for the foreseeable future.