This whole report is pretty dumb. It contradicts freely available, undisputable facts. For starters, smart phones aren't necessarily a replacement for portable consoles. This gen has been by far the most successful one for portables, and demand is still incredible. It's easy to see that smart phones could be or should be a threat, but so far it hasn't happened.
Secondly, the chances of new consoles not appearing is nil. They're most likely already in R&D.
Third, digital delivery vs. retail is also not a black-and-white choice. Both exist and complement each other well, even though they also compete for dollars. Videogames are still becoming more and more popular, and there's room for all facets of the business to grow.
The only thing he got right is that publishers will keep trying to steal our rights and "recover the profit lost to resale". And they'll keep failing, if there's any justice in the world.