We had both of these up until around 10 years ago and they all got swallowed-up by the 'big boys'. Phone games are amusing, but nothing I want to pay $50 for and enjoy for years. Deep and immersive games just cost too much for small devs to make anymore. I almost think game development itself needs to evolve to make games on a much leaner budget for the market to survive.
Games like MW and BlOps are examples of uninspiring cash-cows with little substance and over-the-top stories.
Yet, how much does it really take?
If you got 10-30 creative and passionate people, and a good engine license
(forget full source, here--the days of a modern engine with a few people are gone), with a cohesive vision, but differing opinions on the best ways to make it happen, would you really not be able to get a good game out of it?
My thinking on that is that it isvery much like Hollywood: when it is seems easier to spend money to tackle a problem, they spend money to do it, then say, "oh, it takes all these people all this time, and all these extra resources." IMO, much like movies, there's no reason that creative people making it can't do excellent work with far fewer resources. However, as long as investors and/or publishers believe that it must be so, those smaller groups will have a harder time developing their game(s).