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Yakuza creator Nagoshi says the era of game size being most important is coming to an end
(www.videogameschronicle.com)
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He was hired by Tencent after they launched LAD iirc, I remember some news but can't tell when it happened in the post-covid era.
But I do find small, almost theatrical worldmaps or even sets of locations as a thing writers and designers can use to achieve greater effect. Y5 had Taiga Saejima's town and mountain locations with vibes very different to what Haruka sees in Sotenboru, and it makes more sense and gives more space for gamedevs to customize these experiences than a gameworld where these are all interconnected walkable locations.