That's absolutely what's happening in the console space and will only worsen next gen.
The middle has fallen out. You can't make a AA game and make a profit with it. It's either be an independant on PSN/XBL/WW or go BIG. This is why THQ is bankrupt along with a whole host of others.
However, a lot of developers (staff, not so much whole studios) are moving too the mobile space so they don't have to make CoD:BO 14 or GTA 7 or GoW5 or AC 8 but can make whatever their hearts desire (that has a reasonable chance to make money). While starting small many are growing into medium and even into huge developers making profits that far, far outstrip what console game developers are making (when they make any profit at all). It won't surprise me if in the next few years, EA and Activision are bought out by what was a mobile upstart just a couple years ago.
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