I would argue that 3D games and consoles happened. People started demanding more from games: They had to be bigger, more immersive, visually more advanced. The

I would argue that 3D games and consoles happened. People started demanding more from games: They had to be bigger, more immersive, visually more advanced. The niche gamers still existed, but the publishers didn't want to cater to them, for the most part. The Broken Sword series is actually notable for surviving this trend, by transitioning to 3D and being console-friendly. Fortunately, "the long tail" also happened, and the market has expanded in scale and improved ease of distribution (Steam, Itch, etc.) to the point that it's no longer true that every game has to be a big-budget "AAA" game; there's plenty of room for tons of niche stuff like adventure games, and it can be profitable.