Obviously they have the third party support not to need to BUT there was a definite joy of experimentation in Nintendo's recent "budget retail" projects. - Hopefully we'll be getting even more of that from Nintendo, but would you like to see Microsoft and Sony do the same thing?

It would provide them with a chance to make shorter games that were more akin to PS2/Xbox like games recycling assets; could those types of games make a profit on their consoles?

If I recall Sony has actually tried experiments with something not that different to it with titles that blurred the difference between sequels and DLC in much the same way New Super Luigi did... (I have a 360, 3DS, and a Wii-U; will likely get a PS4 this year if I don't go broke). Dragon Age: Origins basically did this with Dragon Age: Awakening, but as I recall that was locked as purely DLC but still great fun; I know their are even older examples as well.

Meanwhile games like Rainbow Curse have of course historically been a thing. But I like what it represents and want more projects like that; the questions remains, would it be worth Sony and Microsoft's efforts to try this themselves?

I think both microsoft and sony believe that indies fill that need.

Besides, ther a lot of retail no so big games from sony and microsoft, they just dont get much attention. Ori and the blind forest or puppeter could fill that spot, i think.

Sony's Japan Studio actually has a pretty good history of experimenting in their games. It's a shame the studio was a complete clusterfuck during the seventh gen, but with Santa Monica founder heading the studio, the eighth gen is promissing.

What I would like to see is more "medium" games. It seems these days games are either AAA, or small digital-only games, likely an indie. There's no middle term.

Microsoft was the biggest pusher of small games in the 7th gen. Arcade games are big on Xbox 360.

Yeah the boatload of indies on ps4 and in development cover those needs.

I feel like Rainbow Curse is the middle ground... despite its being a sequel... to one of my top-ten games of all time... 

HURRY UP AND LOCALISE IT FOR EUROPE, TREEHOUSE!!!

Sure there is, DQ Heros, FF Type 0, Disgaea 5, Persona 5, Guilty Gear Xrd and a crap load of Wii U games.

Hasn't Sony done this with Journey, flower, etc? I feel like that's the same concept, essentially. Except those have less content.

Nintendo has always supported franchise spin-off side projects.

See: Dr. Mario, the old Mario Gold (on NES), Mario Kart, Yoshi's Safari, Kirby's Pinball, etc. etc. etc.

This is nothing new. And technically, Sony at least has been doing this, with things like the LBP racing game, Jak Racing, etc.

So has Microsoft then, Halo Wars and Banjo and Kazooie Nuts and Bolts.