He's not wrong, though. Game development is a business, like any other, and larger-scale games require exponentially more resources to produce than smaller indie titles.

Obviously one could make the argument "Well they shouldn't be making every single game into a huge, multi-billion dollar blockbuster title that costs the player an arm and a leg to gain access to, then they wouldn't need that amount of resources to begin with", and that would be a fair argument. But ultimately, people keep buying those games, anyway. And not by force, they buy them of their own volition. So those games continue to be profitable. There's no incentive for big studios to change their ways when consumers keep giving them money, so they're going to keep making huge games that require huge resources and huge payments from the players.