You know, development just got more and more expensive, reaching a point where some titles had to sell 5 million just to pay the initial costs, and selling 3 million became a flop for many titles. Konami already pulled out from this madness, and I really call it madness. Other developers are going to stop pursuing the AAA dream?

AAA and development costs and time sky-rocketing in my opinion just hurted the industry as a whole. We get a bucnh of games cloning each other because there are too much money so they can`t take much risks, we get games being delayed forever ( Square Enix and the FF vs XIII turned into FF XV), and eternal sequences that seem to never stop ( Hi Call Of Duty and Assassins Creed). A FF games took 2 years to be made, now they take 10. Many developers and publishers are struggling just to stay open even selling millions. 

I don`t think AAA will die, I think it will get more restriticted to some franchises,and mostly developers in consoles will start targeting a health middle-term than going full on AAA.

That's like me saying every movie takes 12 years to film just because Boyhood did.

The big Christmas AAA games are making as much money as they ever have, thanks to full price preorder bonuses, DLC, season passes and in-game microtransactions. Why are you saying games releasing more frequently is the bubble bursting?

Overall development costs are actually falling right now, because PS4/X1/PC are very very similar architectures (certainly compared to PS3/360/PC), and because engines are now a commodity.

Japanese companies making AAA games is in decline, yes. Not the industry as a whole.

Not for competent studios.

People have been saying "the AAA bubble is bursting" for years, as if it wouldn't be dead obvious when it happens.

If the fall isn't swift and unambiguous, it was never a bubble.

Yeah, no. You need to provide more examples than that. Also, we know that Kojima didn't know how to manage a budget, which got him into trouble with Konami.

Plenty of AAA games are very successful, so no bubble bursting.

In fact, I can't think of all that many AAA games that don't seem to have made a profit.

Bad times for PC gaming ahead because most AAA will be only on PS4, Valve wont fund AAA games they cant even make a Half Life 3. Thats my predictions

Japan is. Just from SE, we have tons of B tier series coming. Thats a good thing, bring back the middle ground.

It was in decline

Yeah, that seems like a pretty poor example. Games do take a lot longer to develop now than they did in the 5th or 6th generation, but they aren't normally taking 10 years. Even FF15 only manged to hit that number by essentially going through multiple different development cycles. The game itself could probably have been done in 4 - 5.