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RenCutypoison said:
The title of the thread is not really representative.

From what I read, it's more about what sony needs to do to replace nintendo :

“That is the challenge to us. We need to bring maybe more family-friendly, more casual experiences into the market. I think there’s a big market segment there that we should take the challenge to engage and I see lots of potential to do that.”

I think it is. He's saying Nintendo fills that part of the market really well, whereas for Sony it is always a challenge to gain some of that market. Without someone filling that hole, the video game industry would be losing a huge chunk of their potential audience.