I think you touch on a major problem. There are two extremes now - the ultra-publisher umbrellas that push out AAA market products, and the indies composed of 5 guys in a basement. There are very few companies with 50 - 100 people in the mid-range making mid-tier games with good gameplay (not revolutionary) good graphics (not Crysis 3 here) and fill in an industry gap. They all get acquired by big publishers.
In the 80's, even when Nintendo was practically the only publisher on the block, development studios contracted to publish games with them, they weren't owned by them. Up until the mid 2000's studios weren't owned by the publishers like they are now. Look at how Blizzard / Bioware / Epic / id etc all got bought and brought under big publisher umbrellas.
In the 80's, even when Nintendo was practically the only publisher on the block, development studios contracted to publish games with them, they weren't owned by them. Up until the mid 2000's studios weren't owned by the publishers like they are now. Look at how Blizzard / Bioware / Epic / id etc all got bought and brought under big publisher umbrellas.