This has long been widely believed, but here is Take-Two (Rockstar/2K) explicitly saying it.
Source: http://www.gamesindustry.biz/articl...-wants-to-empower-a-new-breed-of-indie-studioWorosz makes it clear that, when he talks about these projects having "smaller budgets", that is relative to the size of the budgets that Take-Two's other labels, 2K and Rockstar, normally deal with. Private Division was founded on the connected beliefs that some ideas require a substantial investment to be fully realised, and that the swelling budgets in AAA development are leaving some ideas behind - whether that's down to gameplay hours, riskier subject matter, or an absence of multiplayer modes.
"With the investment risk for video games now easily eclipsing $100 million in development spend, it's really hard to break new IP," he says. "You're taking a new risk every time you try to bring IP to the market, and that's a big cheque to write for something that is as yet unproven.