Context:
He's saying that console gaming is relatively niche compared to F2P games. If you look at the global video game industry, mobile games account for over half of the industry, while PC and consoles each account for about a quarter of the industry. And when you look at what are the most-played and highest-grossing games, they're mostly F2P games (mainly mobile apps and F2P PC games). So he's implying that mobile and F2P games are now the new mainstream of video games.
Fun fact:
Sony's highest-grossing game is an F2P mobile app, Fate/Grand Order. It generates more annual revenue for Sony than their AAA blockbusters, at a small fraction of the budget. In 2018, Fate/Grand Order grossed over $1.2 billion. That's more than the combined revenue of GOW and Spider-Man on the PS4.
I tried to point this out I think it summaries what the thinking is. TC is right in his argument that this is a dis to the chest pounding playstation old guards from the CEO though. PR is probably not happy with the choice of words "Niche" even if its true. Oh no the faithful will be upset about this lol. I think TC argument kinda goes of the rails when he brings nintendo (mind you an actually smaller market when you bring everything) into this. He's so mad at cows that he fails to see that Nintendo new president has a similar boner for very much the same thing. I believe he said hes not satisfy with switch's profits and wants to create a 1 billion smartphone game operation.
Nintendo has its own major mobile hits with Pokemon Go and Fire Emblem Heroes. Pokemon Go makes $1.3 billion annually, while Fire Emblem Heroes has grossed $500 million. However, Nintendo only receives a fraction of the Pokemon Go money, so they make more money from Fire Emblem Heroes, which is fully owned by Nintendo.
I also forgot to mention another reason why the Sony CEO described console gaming as niche: the fact that console gaming is actually niche in Japan. The Sony CEO may have just been referring to the Japanese market, where console gaming has been losing relevance, with the exception of the Switch, which is a console-portable hybrid.
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