No.74870
There are a lot of 'indie' games that were actually more expensive to make than retro stuff back then.
No.74871
No, Unreal and Unity really level the playing field in that regard. There are some pretty good looking games that were made by small teams or even individuals. Manor Lords was being made by one guy, it got picked up by a publisher and I don't know if the dev spent that extra money on more people or not but regardless most of it was done by one person.
This is a really good time for indie games.