Haha. Here we go again. More doom and gloom reports based on the fact that he lets his child play way too much on his iPad. The problem with this whole prediction is the same problem with the whole Android vs iPhone debate. The reason why so many things don't come out on Android devices is because there are literally thousands of devices that use Android. I love Android, but I have come to terms with the fact there will be a noticeable lag in quality applications for it. Even if I get it a year later, it was out on the iPhone for a year already. With iPhones you get two iteration a year, and then an iPad or two. These devices are mostly the same (iPhone 4 vs. iPhone 4S) and there isn't an instance where you are left behind with either of them. And any games that come out over the next two or so years will still run well on it. Because they have the same dedicated hardware.
I know what your thinking, what is this guy rambling on about? So here is the tie in: Games have reached the level and quality they have due to generations of dedicated quality hardware. There will be no single device that handles anything because there will be market competition in those devices. So, really what this guy means by saying what he is saying is that dedicated quality games will mostly disappear and we will be left with a million different versions of simple games like Angry Birds. It wouldn't be possible to have your Skyrim, your Gears of Wars, your Halo, your Resistance, your... you get it. I am chiefly a PC gamer, but I also have a PS3 I am enjoying a few new games on (Final Fantasy XIII-2, Asura's Wrath, and tomorrow will be Street Fighter X Tekken). I would honestly love if all of those companies would make good quality PC games more than anything, but I won't hold my breath.
The only thing I see disappearing is folks like him who think they have any idea of prediction and foresight. For years now people have been stupidly saying that PC gaming is dead or is dying, yet the PC gaming industry as a whole has seen $18 Billion of growth from 2011. Doesn't sound dead to me. Also, to further defunk what this guy is saying, video games are the largest entertainment industry in the world. You think there will be another 10 years tops of that. I seriously doubt it.