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Software bloat? This elevator needs an 8GB Core i5
(www.theregister.com)
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And that’s basically it!
A big part of games taking up more and more space is due to higher resolution assets. Creating installers only installing needed assets would drastically reduce the size for anyone not playing on extreme or whatever they call the maximum resolution.
But games do still tend to be among the archetypes of software, which hits bottlenecks that needs performance optimisations. You only have whatever hardware your end user has, you can't just buy a bigger server... well Google Stadia tried
I love how you can take an old game now and, assuming it's still playable, the cut scenes often look really bad compared to the regular game play, since they were pre-rendered at what would be considered low-res today. It used to be the other way around!