The entire AAA bubble has burst? Not yet.
I believe we're in the penultimate phase, though, where the market is saturated with expensive low quality titles. Over-monetisation, lack of overall quality despite soaring budgets, strings of flops. However, consumers can still identify quality work through word of mouth because there are enough consumers taking the plunge on big titles. Titles on the lower end of the AAA spectrum can survive off of word of mouth sales, usually ~3 million, which allows titles like STALKER 2 and Space Marine 2 to still find success, and titles like Wukong to utterly explode. These kinds of successes will keep the AAA space afloat for a few years yet. However, given the lead time on major titles, the market can't adapt fast enough anymore, and when their chickens come home to roost, the bubble will finally burst. We're just seeing the fruits of the pushes started end of last generation - forced DEI, GaaS trash, lecturing content, open world slop - landing with a wave of high profile failures. There's a lot more to come before this generation is over.
The last phase, when the bubble bursts, will be when high end AAA titles from established high quality studios fail. That'll highlight the lack of consumer trust in the overall market and indicate the bubble has finally burst. In this phase, there aren't enough consumers taking the plunge on even smaller AAA titles to create the word of mouth sales needed fast enough to deliver meaningful success. Ubisoft are in this last phase now, where none of their games are actually selling because consumers have lost confidence in their titles. Too many games at too high a price at too low quality. If games like Wolverine or Naughty Dog's new IP fail to sell more than two or three million copies in their launch months, that indicates consumers have lost confidence at an industry level, and have moved off of massive budget titles - even from established winning studios - completely. That'll be when the sky starts falling.