Very correct on the indie thing. It's the only way to ensure some stability: keeping it small, keeping it simple.
The big game development studios have always been like this. Half the time, they do have concurrent dev cycles, multiple games in the works, concepts being fleshed out for the next game long before the current game ships.
Here's the problem: the publishers. They give your studio money at the beginning of a development process, and that entitles them to be utter ogres about schedules and ship dates. It's very common for a "next project" to be yanked out of your studio's hands and placed with another firm. It's also common for development studios to pull in outside firms to help them on projects, as when Gearbox pushed the Aliens Colonial Marines game to Timegate Studios.
The end result is that there is this humongous push to get whatever is next to ship out the door, and to hire and freelance help around that project. Once that project is done, shifting to something new would require repurposing everyone, which means a few months of unproductive work, or worse yet: a few months of no work... Check out some of the details in http://www.gameinformer.com/b/features/archive/2014/02/12/fa...
Going from the period of game development where you're experimenting, to the time where you're full-bore pushing on a final vision is not something you do overnight. it requires a lot of prep work from game designers, engine developers, and art directors. If they've just been doodling around and trying to "find the fun" as is the primary goal in most early game dev processes, then they're probably not ready to gear up for a huge push on something as soon as the previous game ships.
Thus, you get this scenario where AAA require millions of dollars to make, but developers don't have that kind of cash (save a very few), so they get it from a publisher, who then handcuffs them to ship dates. Anything you can do to get that ship date met will result in a return of vastly more money to your studio, due to how contracts tend to work, so you throw money at the problem through staffing up.
Then, when the game's done, you go around to publishers with the next idea and take on another million dollar contract. Why? Because the funds you receive from publishing that last game don't come into your account (if you actually get any money at all: many agreements are only for the up-front $) immediately. These are effectively royalties, so you will basically be waiting a full quarter to get your next check from the publisher. At this point, you can't afford to float 200 AAA developers and artists for a full quarter.
This is why online, in-game-transaction games are utterly decimating the publishers in terms of growth. Riot Games is immense. Valve makes oodles. Why? There are no publishers between them and the player. All the money comes back to them I don't think Riot's had a layoff yet. Valve's layoffs were entirely project-based, not funds-based.
Publishing yourself online is the future, in every way. It encourages agile development, and lets people go home at night to sleep (except the server admins, but they can't sleep in any industry).