Many people are saying UE5 will change the way triple a games will look and feel but do these improvements also affect smaller games, and should small game developers use it over other alternatives?
Yes, Unreal Engine 5 can definitely be used to develop smaller games as well as larger triple-A titles. It's a versatile and powerful game engine that can support a wide range of gaming genres, including FPS, VR, AR, RPG, puzzles, platformers, and more.

One of the major benefits of using UE5 is its state-of-the-art graphics capabilities, including nanite virtualized geometry and Lumen realtime lighting system. These features can enable smaller games to have a more immersive and visually stunning experience, which can be a significant advantage for indie developers looking to stand out in an oversaturated market.

That being said, UE5 does have a relatively high learning curve and can take some time to master. It may not be the best option for developers who are just starting out, as it can be difficult to use and troubleshoot issues with the engine. Small game developers who are comfortable with programming and game development may find UE5 to be a valuable tool to develop their games.
What about Godot 4, is good for both triple a games and small games?
Godot 4 is an upcoming version of the Godot game engine that is currently in development. While it is not yet released, it is expected to have a number of new features and improvements that will make it suitable for both triple-A games and small games.