I don't think the issue is that the West is going backwards in capability; rather, it's that although it has the capability to produce great products (software, media, etc.), it deliberately chooses not to because it's not as cost effective, because the people with expertise are overworked and understaffed, or because management had other priorities (see AAA game development).
AAA games are eye-wateringly expensive though, management aren't imagining it; my point is things becoming more expensive is a symptom of decline. I'm sure the late romans consoled themselves they could build another Pantheon they just cared more about efficiency now.
Where I work in government we've stopped paying for important data from vendors (think sensors around traffic etc.) because the quotes are eye-wateringly expensive. But I've worked in data long enough to know the quotes probably reflect genuine costs, because data engineers are so incompetent (and if it's a form of pricing gouging it's not working because gov isn't paying up). So it looks like we're choosing to be in the dark about important data, but it's not entirely a choice.
Saying we can do stuff but it's unaffordable is imo just another way of saying we can't do stuff.
They are, but they don't have to be. This is definitely an example of the West faltering where the East is really flourishing. They aren't trying to make the next Fortnite nor GTA 6 or whatever billion dollar day one hit. They pick a more modest scope and budget, reuse assets smartly, and get reliable releases out.
In other words, the capitalists won.