He's completely wrong. As I've noted before, the PS2 was fucking KILLING IT when the PS3 came out, and I'm pretty sure the same went for the first Playstation. His prediction is ignorant of history.
EDIT: I guess if you wanted to argue it in the most base sense that releasing mid-ben refreshes may have been the plan to stall the next true generation, then I guess I'd buy that. But here's the thing: one player wants out of this generation desperately, in spite of the new hardware. The other is leading the generation and they've released hardware historically when the existing machine they had out was printing money. I'm betting we see new machines next year, so even if the release of mid-gen hardware was to stave off the coming generation, it didn't work very well.