Dying? I'd say no, but it is reaching a point of implosion that will require a mindset redesign.
I think I mentioned this before but the public is partially responsible for this. Excessive focus on graphics, overhyping, shattered expectations, increasingly unsustainable AAA prices (which are are a direct result of said overfocus on graphics and scope), incredible long development times (which, again, trace back to all of the above).
I'm not saying the quality bar should lower, but people need to refocus on what matters: gameplay. Nowadays AAA efforts became mostly bland, empty open world slop that is only midly interactive; hollywood budgeted games that are more akin to films, rather than a proper game.
The public in general signals that this is what they want, and then disappointment and low review scores abound when companies actually try to deliver these lofty expectations, however haphazardly they can.