Ubisoft: "No Room for B-Games"

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Yannis Mallat, CEO of Ubisoft Montreal has said that the middle-market "b-games" have no come to an end. 

He said in an interview that next-gen consoles will mean big-budget AAA titles and smaller titles will continue to draw in new gamers and customers, but anything in between will suffer.

“The in-between, the belly of the market, is the one that just collapsed in a way and disappeared. Meaning there is no room for B-games, if I should say so, which proves the point of quality. I think that companies that put quality and consumer value as a primary focus, as we’ve been doing at Ubisoft, will enjoy great success.”
— Yannis Mallat

He went on the say that it's a question of bringing quality content to the table and it's ok the invest more when you know you will get more in return.

He is talking about mobile initiatives, tablets and Facebook games. He said they will continue to bring new customers to the gaming industry, but everything between that and AAA titles will be squashed out.

Now, I'm not really sure how I feel about this. Whilst I see where he's going with this, I'm completely thinking in the other direction. I've spent the last few weeks playing mostly green-lit games on Steam. Don't Starve has been taking up a lot of my time, and Towns before that. I enjoy these games as much, if not more, than I enjoy AAA titles. I've certainly put more time in to these than I have AAA titles this year. 

I'm curious what people think about this, so please let me know! Is this the end for the middle-class game or is this just the beginning?