I agree competition is a must. AAA companies at this point have clearly demonstrated they care very little of innovation, or of their fan base, because they know for sure that even if they release slop or AI gen stuff (looking at you Black Ops 7) the game WILL sell, because there's this culture of fanatism and borderline obsesion with certain franchises that have a fanbase that will refuse to let it die (big ones at that)
I'D ARGUE THO, it will depend on the studios themselves to make that difference, new games coming like Silksong, can clearly upset or callout big companies to realize "we need to up our game(heh)" this is by far a long shot tho, I am aware, since its really asking too much for an AA studio, much less an indie dev to release games constantly unless they have a set team and even then it would not be a competition to AAA companies since they crap out 10 games per week.
At this point we can only give time to time itself. I'd go as far as to thing the game industry needs to crash for like a week or two to truly make them panic and get their sh*t together, again, wishful thinking on my part.
Buy indies and play retros, that's my way of going about it right now, and honestly I'm enjoying it