I think if you look at the larger numbers, there is more of a middle class of game devs than ever before, they just ALSO exist in the shadow of a set of large studios that are larger than ever before. I as a game player feel like I'm getting more "games for me" than ever, even though the games I enjoy fall pretty far out of the mainstream (Farm Together 2, Cat Quest 3, Quest Hunter, Slime Rancher 2, Factorio, Traveler's Rest, Satisfactory, many many more).

All of those are games made by "small to medium sized" studios and sold enough to support their team (maybe not Quest Hunter, as that's older). My point is that there's just SO MANY games that're just mid-size and floating along. Basically no one is getting RICH on game dev, but there's more folks making a living there than ever.