Console gaming is niche in terms of % of total gamers. It is not niche in terms of % of total revenue.
Console gaming is essentially premium gaming. It is far better than flash games or mobile games or facebook games, etc..., but customers also have to pay for this premium experience. I'm sure someone like Yoshida is looking for ways to get those other gamers to spend money on the types of games that Sony delivers. That is what I am getting out of his statement.