Good point Warchild. But I think what's happening now might be worse for the big studios than the modest budget.
For a while now studios have been relying on the fact that the experience of a movie theatre is much better than what you can get at home - a big screen, awesome sound... so we've had rising movie receipts around the world. But now, we can all get big flat screens at home, better sound systems than many movie theatres and ultra-high resolution Blu-ray disks. For people like me, that's been enough to make me pretty much give up on the theatre - no more out of focus projectors, scratched prints and chattering teenagers with their mobile phones.
What the movie studios really aren't prepared for are the really high quality rips that are circulating on the Internet. Forget the blurry camcorder copies of ten years ago, these are taken directly from the master prints and look just as good as the originals. And this is going to hurt everyone in the industry, big budget or not. Attitudes to piracy are changing, there have been some really interesting academic surveys and they all point to the fact that consumers don't like being able to transfer their movies between devices, they don't like region coding of DVDs and they really don't like release windows where movies are released in the US long before they arrive (if ever) in Europe.
One way of making money in the future might be to make modest budget movies and release them directly on to the Internet through services like hulu.com or iTunes. I don't know if you caught Joss Whedon's 'Doctor Horrible's Sing Along Blog'
http://drhorrible.com/ which was released as an experiment last year (it's on iTunes now); made for $200,000 - released for a limited period for free, then on iTunes, only then on DVD - it's made a lot of money for the cast and crew, cut out the middle men who make most of the money, and got a loyal audience.
It could be the way forward for people like Big D - oooh I wonder if we can get Joss Whedon and him to 'do lunch'?

M.