I don't thinks he's talking about "generations". I think he's talking about the next step they're taking with the ps3, and not the far away ps4.
This is from the article:
"Regarding that next cycle, Sony plans to expand the PlayStation Network"
Sounds like Home + more.
It sounds to me like the last cycle was getting the ps3 off it's feet, and this new cycle will cover making the ps3 all it can be, via software. I sure as hell can't wait for LittleBigPlanet!