Yeah, he's got a point. He's also got a massive fucking blindspot.
I mean, what if I told you there was a system that only cost $130, had a natural pick-up-and-play-it control scheme, a bevy of casual and kids games, and is about the size of an adult's hand? Because there's one sitting on my desk right now, getting pissed at me because I haven't bought New Super Mario Bros. for it yet.
So yeah, worst case scenario, PC and Console games will scale back their dick-waving graphic-power arms races and the industry will coast on strong handheld franchises for a while. Again.
BONUS RANTING BELOW - READING NOT REQUIRED
Fun fact: The Consolepocalypse already happened. It killed Sega, put Nintendo on a handheld-only schtick for a while, and while the PSX1 was good for Sony, it generally led to a lot of failures and losses for third parties (yes, even Square, once they expended the huge dump of money they lucked into with FF7.) Once hardware caught up to consumer demand we got the much more reliable PS2 (reliable financially, not in hardware terms), and Nintendo stuck its toes back into the water after pretending the N64 didn't exist for a few years. That the next one is, let's face it, about to happen again so soon is kind of ugly, but not something we've never seen before.
What's making people so uneasy is the fact that the PC gaming market is set to crash simultaneously, and for pretty much the same reasons. It's going to take some time before developers figure out and adjust to the new niches of each format (PCs are now the social gaming platform and not the graphics platform; Consoles are now the graphics platform and not the social gaming platform; handhelds are and always will be a gateway drug for the kiddies; and arcades are well uh fuck arcades) but it's inevitable. I'm honestly waiting with baited breath for the bubble to burst so we can get to the stopping and thinking point, because I'm kind of tired of devs wanting me to pay $500 so I can god damn play Metal Gear Solid.