Yes it is and it will be the downfall of this industry in the coming years if they keep going like this. We already saw what happened in the 7th gen, lots of studios closing and multitude of layoffs. This trend isn't going to stop because companies are doing the same mistakes!
Budgets will increase because gamers demand more power with each passing gen. That in turn will elevate the costs further down the line which in turn will make budgets more robust and will make the risk of failure a more serious thing. The idea of more power with each passing gen has to go.
There is no need to push the limits with graphics and budgets, gaming should be something more simple. Indies are a good move and I'm pretty sure they will be important as the years go by. Even mobile games show you that you can reach big profits with something really simple. It' s all a matter of quality. If the game is good and people want it, then no matter how simple or how much graphics it lack, people will buy it.
Just look at Tetris, it keeps selling and selling and it lacks those pretty graphics some console games have.
"I've Underestimated the Horse Power from Mario Kart 8, I'll Never Doubt the WiiU's Engine Again"
