As someone who's spent the last 7 years building a 'AA' studio, I don't really like the term. I prefer to call it Artisanal. By contrast I prefer the term factory for what people call AAA.
A factory studio is staffed by hundreds or thousands of employees, they need production lines to function. An Artisanal studio is staffed by under 50 and so everything can be bespoke. That's why they make better games at lower costs.
The executives don't want Artisanal studios because they need their employees to feel fungible and need somewhere to hide the profits. They'd rather make worse games in factories than give power to developers.
@1st_C_Lord I think of Llamasoft as a BAA studio.
@1st_C_Lord I always considered coding/SW a sort of "personal artisanal craft".