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In theory I like the idea of making games of a higher quality, but I don't like that he hints towards there being less games. If we're only talking about Sony's first party studios, then their output was already pretty bare in the first couple of years of the Playstation 4's life. My biggest worry though is that creating less games but spending more time on them means they potentially have to focus less on niche products, because the longer it takes to make a game the more it costs, and the more it costs the larger its potential demographic has to be. This could lead to less experimentation, less unique products, and less innovation. I'm at a point where I'd rather an interesting game with some flaws than a creatively dull game that's technically and commercially proficient, that's probably why I think The Last Guardian was one of my most memorable Playstation 4 experiences. 

There are however a few positive counter-points to this: 

-The gaming industry is constantly getting bigger from a software sales perspective 

-Games like God of War and Monster Hunter have shown that marketing can play a major factor in the growth of niche franchises (not that they were ever the most niche franchises ... but ... you get it)

-Sony has a new huge studio in Bend Studios

-PixelOpus is able to create a game like Concrete Genie despite being one of Sony's smallest development studios

-Sony gets a lot of benefit out of owning IPs or licenses even if they don't own the studios (Ratchet & Clank, Spider-Man, Until Dawn, etc.) 

-They have continually supported niche efforts in Japan Studios and VR games 

Although to be fair to the last point, it remains to be seen if they will allow Japan Studios to make projects as ambitious as TLG or Gravity Rush again. Supporting niche VR titles comes more from a future proofing perspective I think then one of supporting niche games in general. You have to push an unknown product to make it sell after all, and that's not necessarily true for consoles.