Kotick is a toaster salesman. His remarks make perfect sense from the standpoint of someone who doesn't specialize in the entertainment business and merely looks at balance sheets. Bungie is only good because their Halo games sold the most. By whatever internal toaster sales yardstick Kotick is using, that means all other independent developers have failed because they didn't produce GAME PRODUCT #48388 that sold as many copies as Halo (GAME PRODUCT #48329.)
Activision runs franchises into the ground however because Kotick doesn't comprehend the entertainment biz. In his mind they're just interchangeable models of toasters, dvd players, or compact cars; sell one model until you see the numbers on a sheet begin to taper off, then change the model name and the color, reintroduce it next year, and sell that until you see numbers taper off, rinse repeat.
Eventually, this will result in Activision becoming the next Acclaim, but even then, from Kotick's point of view Activision is just another number on his balance sheets; he'll trade it off when it stops bringing in bucks.
The reason why a handful of companies such as Nintendo or Valve, even, survive is that they at least try to treat their properties with some sense of cultivation and care with how they're used. As usual, remember that guys like Kotick aren't in the game business, just the general goods business. Game companies run by people who are only in the game business know that the health of game franchises, game customers, gaming culture as a whole, and what customers think of your business, is vitally important to stay in business in the long run. (What people who think companies are just companies and naturally don't care about being "evil" entirely miss. Being "evil" in the way that Kotick-esque companies are, doesn't create sustainable business aka, doesn't keep making money. So it very much matters to the bottom line.)