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Is there an indie games bubble?
(roadmapmag.com)
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The marketplace has grown a lot, so it might be harder to stand out. But indie studios tend to operate in a far more sustainable way.
As long as there is a demand for games that are complete, affordable and GOOD... the indie game market will stay healthy.
Furthermore, there's no shortage of people who sometimes decide to support indie devs over giant AAA studios. Maybe I'm a bit snobbish, but I wrinkle my nose a bit whenever the next "super mega ultra open world souls-like Metroidvania rogue-lite dungeon crawler battle royale" from Faceless MicroTx Corp comes out, even if it winds up being decent.
As long as people can discover these indie games, people will buy them.