No, he's right. This is going to set off a domino effect. The independent 3P market as we know it today will probably cease to exist within 10 years. It doesn't matter if there are still thousands of 3P devs and pubs; when they collectively are worth only 1/26th of the total market revenue value, and can't even produce AAA or even bigger AA games, then what industry are we really left with?
This is only going to lead to less games, less software variety and innovation, and ironically, less actual competition.