Assuming we're talking a gen that will likely come no earlier than 2020, I agree with Jaffe.
What I find strange, though, is how he talks so much about Sony and not mentioning the other two. If this is the future, based on what I see now I'd think that Microsoft would be in the best position to be the leader in such a space of available players. They've made a point of showing their overall commitment to the cloud and already are the leader in the online gaming space. Not saying the others can't R&D their way to preparedness (the NGP is proof Sony's not going to sleep on it), MS, as a mostly software company, seems to be in the best position for such a future.
Ok, now feel free to grab the torches and pitchforks and come after me.