There is good and bad news for the game-playing public. With the budgets increasing, the quality of games will increase in general. The length of a game will suffer. The day of 40-hour epic games has nearly run its course.
Likewise, smaller studios will suffer. Either they will be forced to allow themselves to be bought up, or they can go into the self-imposed exile of flash-based puzzle games. Worst case scenario: They simply disappear, all of their developers spread out amongst the big three game developers.