In my opinion, I think annual AAA releases are the ones that are making it difficult for new intellectual properties and AA/mid-level development. The average consumer can only buy so many games in a year, and when a few of their purchases are taken up by games like Call of Duty, Assassin's Creed, or their preferred sports game, it leaves less room for the consumer to risk his or her purchases with new intellectual properties and smaller games.
In contrast, it has been several years since Grand Theft Auto IV, so the fans of their games have had time in between entries to spend their money on other games. Obviously each GTA still leaves a massive impact on the industry, where other releases get swallowed up around the same time frame (persevere Puppeteer!), but certain franchises have been doing that every single year.
Ultimately, the consumers are the ones deciding the success of these annual titles, so it's not like we can really blame the companies for banking off of it. At the same time, who am I to judge what people like, especially when many of my friends enjoy games like Call of Duty or Madden. Even I have a guilty pleasure for NBA 2K, although I've managed to restrict myself to buying only two entries during the past generation.