I do hope this little talk was aimed at fooling investors into thinking everything is OK with the triple-A industry, because it certainly isn't fooling gamers. The way he twists the facts to suit his point is rather clever, but the facts still remain: triple-AAA is unsustainable in the long run, and while CoD and other 10 million-plus sellers may float it for awhile, eventually the whole house of cards will come crashing down.
Development costs rose from 3-6 million USD for a PS2/GameCube game to an average of 25-35 million USD for a 360/PS3 game, and that is not even counting marketing costs, which pushed many titles well beyond that. At this rate, there is no way the industry can survive, let alone take even a slight increase in development costs. Particularly in companies like EA and Activision, where the split between development, administration, and marketed tend to favor administration and marketing.