I perfectly got what he is saying. Not even Nintendo could have been successful with a $250 handheld beyond the short term. Expecting the PSV to do well at $250/$300 if only it had the right games coming out is pretty much the same as believing the PS3 could have been a huge hit at $500 or more if only Sony and third parties got out all the big hits in time. As long as price remains a barrier, you cannot expect massmarket penetration; and most people aren't willing to suddenly pay more than their norm for a gaming system when they know that the price will eventually come down.
We don't know that, because Nintendo were stupid enough to launch the system when there was nothing worth buying on it.
As I said earlier, if they'd have launched it late October/early November with a launch lineup of Nintendogs, Layton, Zelda + 3rd party stuff and had 3D Mario/Monster Hunter + more 3rd party stuff for December... Followed by the early 2012 hitters + Mario Kart in the Quarter, as they planned it, then the games would have been there for people to think "Oh. Mario, Monsters, Puppies and Kittens, Karts, Zombies, Puzzles and an old Ocarina? Yeah. That's worth $250."
Instead people were saying "Oh. Puzzles, Puppies, Kittens and an old Ocarina? Sounds ni- What? $250? Nah."