Google seems to be testing larger images that have begun appearing in News listings during display of Google search results. Depending on your personal choice and needs, you will either like or dislike this change that could well become permanent depending on conclusion of Google’s tests.
Natural search results will certainly get reduced due to 2 key changes done by Google. The first is the larger image displayed next to news listings that will now occupy a lot more space on each page. While this move may deliver increased visual impact, it may also end up diverting the mind of a searcher that may want to see more natural search results. On the other hand, larger images may just witness an increase in click-through rates.
Another important change done by Google is to eliminate links that previously led to the displayed news results, which instead now displays a link that directly leads to the news results. There is a link at the bottom of the news listings that leads to more such listings, but that may not get noticed by searchers.
Even though Google is currently testing out this new format with larger images and modified link placements, such changes may just become permanent. There have been several tests done previously that have made it to search results over time and depending on the results of these tests, you may just need to get used to larger images and re-positioned links in news listings in Google search results.