At least when it comes to artistic endeavors like video games it makes sense to be small. I find that the more you turn art into a massive assembly line the less passionate the product becomes. If the goal is quality art than massive growth is not the way.
Unfortunately the expectation for modern games is this near infinite scope which requires several years to complete and way too much money. If your game is required to be this large then you either need a huge team or decades of time from a small time.
So I believe that the larger the game the more likely it is going to be devoid of passion and artistic value. I'd prefer game studios to split up into many smaller studios and make more smaller games.
Unfortunately the expectation for modern games is this near infinite scope which requires several years to complete and way too much money. If your game is required to be this large then you either need a huge team or decades of time from a small time.
So I believe that the larger the game the more likely it is going to be devoid of passion and artistic value. I'd prefer game studios to split up into many smaller studios and make more smaller games.