You could mount an argument for just about anything being niche, if you hold it up against the world's population, like Rol stated consoles make up 25% of gaming and in terms of per person spending that would most likely be higher again, i can see where Yoshida's coming from he's looking for potential growth and that's fine but using niche to describe console gaming is the wrong use of the word, it makes it seem like it is a marginal business and if so where does it leave Sony and the other sectors of the business would he call them niche since that niche games division was a strong factor in their turn around.
This is the CEO of Sony talking to investors who are looking at the big picture, he's not posting on a gaming forum. There were like 1.5 BILLION smartphones sold last year. Physical consoles are a small market that will probably get comparatively smaller over time.
I'm not sure why people would argue over the nuances of the word "niche," either--isn't this a translation from Japanese?