What would be the context of making that comparison?
Here, we are looking at the CEO of a large corporation talking to investors. The context would be other business markets and opportunities which investors would be considering. I already pointed out that the smartphones market dwarfs the gaming console market, as an example. He's saying that the physical gaming console market is always going to be relatively small and thus have a limited scope in terms of potential customers.
Let's say Sony has a home console with an installed base of 80 million after good sales over a number of years. On the other hand, smartphone adoption is projected to top 5 billion relatively soon. Which market has the most potential? What if we include other smart devices capable of streaming?
If the Playstation brand is doing this well in a relatively tiny market, what if the possible scope increases exponentially? It's an argument intended to entice people to invest money. It's no big deal and there is no reason for anyone to be offended for the sake of console gaming or to argue over the word "niche."
For the record, I'm not offended nor am I arguing, just stating my thoughts on the matter. I'm not attempting to persuade anyone, just wanted to share my two cents. The ceiling is obviously much higher on phone games because of what you said. Those games are far less intensive and expensive to make and can produce a tremendous amount of profit (flappy bird, Candy Crush, and Pokemon Go come to mind). That being said, I'd imagine the vast majority of phone games are underwhelming in sales and have little momentum in building a consistent microtransaction support base. While consoles sell less than phones, I feel like personally it is easier for those companies to walk away with high software sales and profits than most cell phone games, but I could be wrong.