Konami

After our discussion on video game development today in class, I started wondering if the big game companies that were around when I played games still exist. The only one I could remember was Konami, and while searching their site, I was surprised to see an updated version of one of my favorite games, Gradius. I found it interesting that the player experience hadn't changed at all in Gradius Rebirth; the graphics are a little prettier, and it's only available as a download for the Wii. I guess these remakes are not big moneymakers for companies like Konami.
The question I have now is how the game developer landscape is broken down - do big companies produce the blockbuster games and individuals are left with the lower-priced download only games?