He means smaller budgets targeted at smaller audiences, which is fine by me. Sometimes that will manifest itself as a shitty facebook puzzler, but other times it means Project: Eternity and Wasteland 2.
He is the ultimate mainstream developer aiming at the largest male audience possible, so he sees doom in current sales numbers trending toward gaming as a whole remaining somewhat niche. I don't blame him for being worried about his career and millions. At the same time though I can laugh and not agree, because I literally think the best thing to ever happen to the gaming industry would be all these publishers going out of business.
I'd like that. More middle-of-the-road games sounds just fine to me, I don't really need cinematic "experiences" in everything I play. >_>
So, short answer? F*** you, CliffyB! :o
Sure, AA games like Amnesia, Chivalry or Mark of the Ninja are the type of things I hope to see from the games industry.
He might have meant the microtransaction-laden, Zynga style games though which I hope is not the path developers take, since Echo Bazaar was the only facebook game I liked and even it I couldn't play because of the "limited actions per day" style.