It depends whether or not it becomes the standard or simply an addition to traditional means of gaming. If the former, he sort of has a point as games development today has a much higher need for per unit turnover than music or movies but if it becomes big enough and the finance model works out, it can become a success. It needs to be played right, like everything else.
The important bit for Sony is getting rid of, or at the very least reducing, the massive R&D sinkhole.
With Sony's influence in developing markets and their ties in the music and movie industry, they can make this work, there is a lot of untapped potential in market segments with a weaker economy for a service like this.
It could either way. Personally, with Sony's pedigree, allies and influence, as well as their reach into developing markets; I think they can pull it off. Between this and Nintendo's new fusion project, an actual viable business model for the modern market could emerge. Notice I say "could", that is essential here.
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