Online discourse regarding the gaming industry is very often monopolized by marketing and business people. Which is normal, since they are “selling” ideas and spreading new and old trends.
What makes me smile often is when I read that a specific genre has died. It is like “hey, everyone! Stop doing this because now people don’t want to play this kind of game anymore.”.
As a designer, anyway, I know that Players look for experiences capable of satisfying fantasies. This has nothing to do with a specific genre. Good games start with an assumption on fantasy. “Be a cat” can be a fantasy (STRAY, an indie game). “Win big at Casino” can be another one (SlotoMania, free to play mobile game). “Dominate your opponent mind” (Chess, classic game).
Starting from fantasy, then you build your actions and mechanics on top. And then you design your economy starting from goals structure. You can eventually add up a setting/world and, finally, the story.
During the process of defining your actions and economy, you should study the market and its trends of course. But I would like to invite you not falling into the trap of riding a trend for the sake of it OR rejecting ideas just because there are not much success cases.
When the market is emptying of a specific genre there are usually a series of reasons. Something that doesn’t work for the most can be a huge opportunity for your reality. Don’t be a follower, write your own story.