Fortunately, she is wrong. AAA is finally about to get its chance at stabilization. This whole problem was caused by the Xbox 360 and the PS3 skipping a generations worth of power when they released. They should have been capped at 720p. The development system was not prepared for the jump to high definition and the tools to make the process reasonable were not developed causing the middle market developers to fold and allowing the Mega Publishers to consolidate. As we moved into the PS4/Xbone generation, the race to 4k exacerbated the problem and now even the Mega Publishers cannot keep up.
Fortunately, the next generation of console is not going to result in another resolution jump. Having to develop these Ultra HD assets and redesign engines to handle them is what drives up the cost of development. The next generation of hardware will give the developers the time to create the tools they should have had a decade ago to reduced the amount of effort needed to build these assets. It will also give them the flexibility to do less optimization to get games to run. By the end of the next generation of console, the industry will most likely stabilize again. Studio sizes will decrease, the number of studios will increase and the cost of development will become sustainable again. The ability to create AAA games will become more accessible.
Let's just hope no one does something stupid and try to skip a generation of power again.
Fortunately, the next generation of console is not going to result in another resolution jump. Having to develop these Ultra HD assets and redesign engines to handle them is what drives up the cost of development. The next generation of hardware will give the developers the time to create the tools they should have had a decade ago to reduced the amount of effort needed to build these assets. It will also give them the flexibility to do less optimization to get games to run. By the end of the next generation of console, the industry will most likely stabilize again. Studio sizes will decrease, the number of studios will increase and the cost of development will become sustainable again. The ability to create AAA games will become more accessible.
Let's just hope no one does something stupid and try to skip a generation of power again.