Yeah, the Order 1886, Killzone Shadowfall, and a few other early PS4 exclusives were good, but not console movers. I think he's trying to go from less games of that caliber to more games of the God of War, TLoU, Horizon caliber.
I don't think that population transition will be relevant and complete until 2030. So up until then local based hardware will still be the majority, and not streaming. Not to mention that is net neutrality remains dead in the U.S. it could mean being charged insane prices by ISPs just to stream your games.
it seems that in regard to E3 if they wants to keep Sony they move the date, I have mixed thoughts about fewer games but more time, the positive is more time and money put into those games , the negative we don't want it to end up with each Sony AAA Game becoming a COD with a longer timespan , another part of Sony's mantra that they took pride in was each big selling game allowed for 7 more games to be made, that way the Journeys of this world got produced, now with games like cuphead and Ori being touted as a reason to be optimistic with xbox's direction going forward it could be a mistake, I hope what that the statement really means is they will continue to make just as many types of first party games and continue to use some of that money to invest in smaller games and the touted lengthened game spread isn't further exacerbated by making less games.