I don't get his point especially as I think he thinks quiet ahead of our times as even using 28nm process I'm not sure portable devices will manage to outdo ps360 in the graphic department while offering a decent battery life.
In the long run I think the best bet for gaming is commodity hardware:
Commodity PC
commodity tablets
commodity smart-phones.
Once this device have "enough" power they will become commodity parts, market will consolidate and there will be less actors. It's the best thing to happen for gaming.
People don't like the idea of discrete GPUs disappearing, mostly because of performances concerns I think it's a good thing. I would enjoy to play some games with my wife, point is neither of our computers are up to the task, I may upgrade my computer she won't even consider it (it's R705 toshiba laptop she won't trade battery life for perfs). Integrated graphics are getting better and better they are really a key part in exploiting the potential biggest market for gaming every body pc.
The same will be true in the tablet/Smartphone space, the market will be huge as soon as the park will be less heterogeneous.
What Rein describes is as next gen consoles are basically tablet. Actually I read more like nextgen system will no longer be console but tablets. If tablets achieve that they are also likely to overtake commodity PC in the personal space. Basically you have a tablet, cloud applications (google doc, office online, music/video streaming), you can connect wireless controllers, cameras, keyboard, displays, printer do what ever you want.
May be tablet are epitome of commodity PC, the computer in its most refined form, only the display.
Anyway I don't think those devices will be enough to pack enough power by the time next consoles launch. @16nm it's another story