The setting might be small or it might be vast, but where your stories take place determines the scale of your game.
In a small-scale game, characters deal with problems in a city or region, they don’t travel a great deal, and the problems are local. A large-scale game involves dealing with problems that affect a world, a civilization, or even a galaxy if the genre you’re playing in can handle that kind of thing. (Sometimes, a small-scale game will turn into a large-scale one over time, as you’ve probably seen in long-running novel series or television shows.)
Amanda likes the vibe of “guy and girl with sword,” and thinks it’ll shine as a small-scale game, where they might travel from town to town, but the problems they have to deal with are local—like a thieves’ guild or the regent’s vile machinations.