He said "repeat," Xbox One will crush its predecessor.
with the power of the cloud, Xbone will triple 360's LTD sales!
In the same way that Nintendo's huge properties cannot sustain a console, having a console with only the big 3rd party games also cannot sustain a console. One could have easily said before the Wii U launched (and many of us did) that Donkey Kong, 2d Mario, Mario Kart, Smash, etc. would give the Wii U a big boost in Japan, and yet they didn't. Without a constant stream of software in Japan which will require more than just big companies making big games, the PS4 will never be anything more than an afterthought in Japan and the only reason the system will even get those games is for the west.
I agree that the constant stream of games is essential, but I don't see PS4 getting drought à la Wii U, even just for the simple reason that we are talking about 1 developer (Nintendo) VS almost all the other developers (not only Sony, but almost everyone, even if not with Japanese-centric games, that could still be aimed at mobile/portable).
You are comparing Nintendo effort on Wii U (so basically 2 "important" games a year) VS way more projects. From Sega (Yakuza) to Tecmo Koei (Dinasty Warriros), from Konami (PES to MGS) to Capcom (RE), without forgetting Namco and From Software, without forgetting western developers that we saw are able to sell decently (from Activision with COD to Rockstar with GTA).
Plus we know that also smaller develoeprs are already working on PS4 (considering PS3 in decline and Vita that is not strong as PSP was, it is obvious to see developers spread "Sonyìs IPs" also onto PS4: Falcom, Gust, Nippon Ichi, GungHo with Grassoppher's game and so on and on and on)
I'm not talking about PS4 as strong as PS2 back in the days, notice. I'm talking about PS4 dominant among home consoles in Japan, possibly able to repeat PS3 LTD.s (that we know would be great in Japan, looking at all other videogame consoles compared to the past generation)
I would argue that Nintendo's properties are a lot less relevant on their own than big third party games. At very least at the moment.
I'm not exactly sure about what you mean by big 3rd party titles not able to support a console. If they can't then what can? An obvious answer I could see, would be a combination of 3rd and 1st party releases. Are we assuming Japan Studio won't develop anything Japanese centric on the PS4 at all?
I think he was talking about AAA vs smaller but more constant games to be released.
the fact is that PS4 will not receive so many games as mobile/portable probably will (due to longer developing times, smaller relevance of home market in Japan and so on), but will still receive a very good amount of games, considering all the developers working on the platform. So there will be drought, sometimes, in its lifecycle (like, right now), but with mid-tier games, and AAA productions, to me it will easily dominate the home market in Japan.
The fact that the relevance of the home market is shrinking is a different topic.