I don't think that's what they're saying at all.
However, I see this as being a more negative trend in a different way: if the new consoles require even larger teams than the current generation - in which a game like Homefront allegedly must sell 2 million copies to break even, we're going to have even less in the way of innovation for high-budget titles. We'll continue to have to turn to downloadable titles and handhelds for any sort of niche title.
One thing to consider as well is that Square Enix now has a significantly larger stable of titles than they did at the launch of this generation. Square Enix didn't own Thief, then, they didn't own Deus Ex, they didn't own Tomb Raider, or Hitman or Legacy of Kain. They had just acquired Space Invaders and all of the other Taito brands. They now own a significantly wider variety of brands that would function as brands at launch of a potentially new console.