I think it needs both, AAA and Indie games. If we would only have Indie games with Indie graphics and animations, I'd call this regression. But probably AAA games and their high budgets and development times went a bit over the top in the last couple of years.
Maybe we need A LOT more AA games, like it was the case during the PS2 era. The industry must regain confidence that a wide range of creative titles is the key to sell many games. Currently too many developers are sticking to the same formulas over and over again.
With a high budget you can't afford any economic failures (like Concord) and with a small budget you are often too restricted. The industry needs to find the sweet spot again. Teams with 50 to 100 members and game development between 3 to 5 years sounds like the right direction.
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