Funny how threatened and defensive a lot people (particularly sony fans) are towards this statement. No Mans Land really pushed the point that you don't have to be AAA to blow peoples minds. Hopefully we start seeing more AA titles like the ps2/ps1.
Fewer AAA really isn't a bad thing and I think he simply means development is going to be more drawn out so instead of 6 AAA 1st party exclusives a year, we're more likely to see 4.
2014-
Infamous,
Driveclub,
LittleBigPlanet 3
2015-
The Order 1886,
Media molecule,
uncharted 4
Bloodborne ( which is somewhere between AA and AAA IMO...)
2016:
Bend studios,
Guerilla games RPG,
GT7,
Naughty Dog new IP.....
note: not all games with nice graphics are AAA.