Absolutely not past peak gaming. Gaming as a medium hasnt even begun to peak.
The infrastructure aside, creators havent properly used games to make art yet, just toys. In terms of film history, we are currently in the "train approaching stop" era of gaming at the AAA level with all these movie-games just trying to tell a static story with no real user interaction in it, and in the silent film era with indie games, where some games like DDLC and undertale (and mayne the fromsoft titles to a degree) beginning to do interesting things with the interactivity inherent in the medium. There is a long long way to go before the blockbuster fatigue era
The infrastructure aside, creators havent properly used games to make art yet, just toys. In terms of film history, we are currently in the "train approaching stop" era of gaming at the AAA level with all these movie-games just trying to tell a static story with no real user interaction in it, and in the silent film era with indie games, where some games like DDLC and undertale (and mayne the fromsoft titles to a degree) beginning to do interesting things with the interactivity inherent in the medium. There is a long long way to go before the blockbuster fatigue era