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ishiki said:

Generally speaking yes. But you're using the literal definition. Not the definition the industry uses for indie games. No one in the industy would say skyrim is an indie game. No one would say Final Fantasy is an indie game. Those games wouldn't be limited by Microsofts "Hypothetical barrier" so  thus wouldn't be included in M$ definition of indie.

What game has amazing production values, that fits what the industry typically uses the term indie?

The literal definition is the definition the industry uses, they just don't look at successful developers that are able to afford large or multiple development teams indie.  Small budget studios, or single developer studios are certainly in a different category from bigger studios.  I agree, but indie is a broad term.  That's the problem with saying "Indie developer".   

There have been hundreds of PSN and Xbox LIVE Arcade games that fall into that category.