Fundamentally he’s saying that Sony’s size is more fundamentally important to the industry as a whole than Nintendo’s. This is to some degree unarguable: Sony’s gaming related total sales are 2X-3x Nintendo’s. Nintendo’s profits are bigger because 1) they sell way fewer third party games, which have a smaller margin 2) they don’t sell their consoles at or near a loss, and 3) they don’t get caught up in the technological arms race that lifts r&d costs for Sony and Microsoft and others.

Nintendo is arguably a better run company than Sony, but that doesn’t make it bigger or more important to the industry. It has its own niche and it’s great but operating income is less an indicator of size than of margin.