They were using the word correctly, "monopoly" doesn't only mean greatly dominant player in an open market. Current consoles are by definition vertical monopolies.

I think we should encourage this framing of "monopoly" more.

You can be a tiny company and still be a monopoly. If you're the only grocery store in a (walkable) town where many elderly people don't own a car, you're a monopoly. If you're the only company allowed to sell beer at a football game (that doesn't allow fans to bring liquids into the stadium), you're a monopoly. If you're a school cantine, and school rules forbid students from walking out during the school day, you're also a monopoly.