It seems to me that there's a false gap being dug between what is considered an AA title and all the other games, between upper class and middle class.

Does it mean quality ?

Under the pretenses that games like Battlefield, COD, Crysis etc...have blockbuster-like action, fancy engines, and theatrical cutscenes, they are being consider more and more to be the only actual AAA titles, while other more creative, original, less action oriented games are being consider lesser of a game.

Does it mean budget?

If yes, that has never been a factor of success nor quality.

AAA is a high budget game. Has nothing to do with quality.

AAA is a big budget game, if quality was related then i wonder what FFXIII would be categorized as XD

Then why are people expecting AAA titles?

They just want more big budget games?

How big is a big budget?

High production value and high quality games that are almost guaranteed to sell abnormally well. Games like Mario Galaxy, Twilight Princess, Skyward Sword, and Metroid Prime come to mind as well, even though they cost less to make. Pushing the hardware. Tremendous hype. Fully orchestrated score. Lot's of ads. It's tough. It's the kind of thing you just "know when you see."

Like I wouldn't consider Lightning Returns AAA, but I'd consider FFXV and Kingdom Hearts AAA.

Any over hyped (over marketed too) game with a big budget that I'm supposed to buy because everyone else thinks it's "kewl". (joke joke),

It's usually associated with budget by most measures, but there are other measures. Budget is not the end all be all and not necessarily an indicator of qualiy. I mean ... Do you consider Too Human AAA? How about Journey? AAA or indie. Of the two i know which one I'd prefer to play despite the labelling.

It changes according to opinion, but to me it's a game that is really good, that is all.

I learned that yesterday.

AAA = Huge Budget Games.

The game can be bad in quality terms... RE6 says hiiiiiiii.

Because a lot of the time big budget games are good in quality.  While this is not always the case, a lot of the times the most talked about games are ones with a big budget

AAA does not necessarily mean high budget.

It's simply a designation used by retail analysts to indicate a game that is projected to be a good investment. That's all. It's not a fan metric, it's a retail industry metric.