Paul_Warren, I feel you are missing the point of the topic spectacularly. You're not addressing Kojima's words, you're mounting an argument against an opponent who isn't even here to argue with. This isn't about the System Wars, this is about the public mindshare of Japanese-developed games, and quite apparently our good man Kojima is not including Nintendo.
Kojima's focus is on the HD consoles, and Western games are conquering the world on those. They're actually going blow for blow with Nintendo when you combine the PS3 and the 360's libraries.
Kojima says the Japanese game industry is in trouble. Address his words and try to interpret them, but don't bring the console wars into this unless you can make a relevant, non-tangential connection between the two concepts.