Yes, but remember when games weren't as complex with Hollywood B-rated scripts, text vs voice acting, and graphical immersion came from all nighters laden in Mountain Dew?
It's somewhat regrettable to admit, but what he says is true. If we want to see AAA titles, by today's standards, only the largest game studios have the capability to make it happen. Sure, there's talent everywhere, but this is a matter of quantity vs. quality. AAA game development takes years, something that would put smaller studios under.
There's still a myriad of lesser titles out there that are still fun to play. They're just not up to par with the AAA standard. I've played a lot of great games from smaller studios and they're still fun. They may not have all the bells and whistles of the AAA titles, but they're also cheaper. A few that come to mind recently include: Braid, Ceville, Machinarium, Mount and Blade, Torchlight, and Trine.