Is the market saturated? Not yet, but the market is getting more and more 'big budget'. I'd say that garage teams are already on the way out in MMORPG development and from now on there will be fewer games released each year and the majority of them will be well known licenses coming from big teams. There will still be room for niche games but they will need to not try to go head to head with the big boys on features and support if they want to succeed.