Wouldn't surprise me at all if it's true. Most modern console games have unacceptably high latency:
http://www.eurogamer.net/articles/digitalfoundry-lag-factor-article
E-ink displays have very bad contrast ratio. Typically about 10:1, compared to 1000:1 or more for an LCD. The only visual advantage of e-ink is higher DPI, which is a marketing based rather than technical benefit because there's no reason LCDs can't have just as high DPI (see the OLPC XO1's display, which is also reflective so it's usable in sunlight).
E-ink is a dead-end technology. Bistable LCDs will exceed it in ever aspect. Ferro Liquid Display technology looks promising.
"This generation may be the one that will face Armageddon." -- Ronald Reagan, "People" magazine, December 26, 1985