The key difference between your analysis and Phil Harrison's analysis is that Phil is talking about broadening the range byeond gamers. As far as you are concerned, you are correct. However, that does not mean you are correct at the expense of Phil's point because that is not the case here.
The problem with that is that nintendo canters to a niche portion of gamers and it doesn't have the kind of reach both sony and ms have being companies that have a wide range of services/products. Nintendo can't match the appeal or reach they have. Let's see nintendo match them before we start talking about nintendo broadening the gaming audience beyond sony or ms.