I believe it's a percentage of their free time, otherwise they would have said "percentage of time" rather than "out of the total amount of time the console could have been used". That would make it more likely to be ~30 minutes or less possibly for the average X360 owner.
I haven't given the methodology a full reading, but I'm sure it can be clarified.
A game I'm developing with some friends:
www.xnagg.com/zombieasteroids/publish.htm
It is largely a technical exercise but feedback is appreciated.