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Hiku said:

I've definitely enjoyed both types. Skyrim for example is very large and empty, but the atmosphere in the game (especially the music) made exploring it enjoyable for me.
But the smaller maps are the ones that ended up with the biggest impressions on me.



Majora's Mask has one of my favorite maps because of how it focused on pouring a lot of personality and character into a small area. Before you know it, you come to associate a lot of different areas in the game with specific people, or situations. And as you get to know the people better, and see how they react when the world is about to end, the world feels more alive, because you know who it is you're trying to save.

The only thing that sucks about Majora's Mask map size is that, even though in the real world there are extremely different climates based on direction, it is almost comically so in Majora's Mask. It wasn't that over the top until you realize that there's even ice on the field leading to the northern side of Clocktown

 

Anyways to answer the actual question of the OP. There doesn't need to be one or the other. It depends on the type of game. Sandbox games wouldn't work as well with small areas, for the most part. But a lot of games would.  iirc the director of Mankind Divided made the game small because he liked the idea of an RPG that didn't need to boast about it's world size because content was so densely pact that you would feel like you're living in an actual district rather than just an empty world. Sadly I have not played the game yet, but stuff like Majora's Mask is a great example of this.