As I tried to explain in above post, he's referring to the bugs they are aware of - which are tracked in a database.
Obviously, with such a large codebase, more bugs linger that are impossible to detect and/or reproduce in a reasonable amount of time.
Come on, guys: I don't think of Newell very highly (anymore), either. But it seems obvious to me that he took the concept of development methodology and bug tracking for granted when he wrote that statement. So he's not at all promising a bug-free game here.
Just one without any bugs they're aware of. If that resembles the truth, none of us know.