Video Games aren't about art, they are about two major things:
1) Sport - challenges and skill and overall fun games, which is what sports are
2) Interaction - Being immersed in something virtual to get off of 'real world' stress
"Art" has nothing to do with it, or maybe the art is simply indefinable. But only fools make games for art, people make games for "sport" and "interaction".
Almost every form of entertainment can also be viewed as an art. Music, Movies, and Video games.
Art has nothing to do with the interaction or the sport aspect of a game as much as it has to do with the overall atmosphere of the game. (not the best description but I can't put into words exactly what the art of it is.)
There are games that are like Flower, Heavy Rain, Madworld, Okami, Tales of Vesperia, and LocoRoco that specifically are going for a particular atmosphere. Yes, they aren't massive successes but each game has its own feel to it and that makes them great games. The same can be said about games like Halo 3, Castle Crashers, LittleBigPlanet, Ratchet & Clank Future, Gran Turismo, Super Mario Galaxy, Legend of Zelda (Pretty much any of them from N64 era and up), they created their own atmosphere and between putting in great graphics, they have their own specific feel to each of them.
What he seems to be saying is to take something generic and then advance 1 thing in it and release the game. I think that's a bad thing to do because it leads to monotony.