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psrock said:

Can it be both? He obviously was refering to Sony when speaking about being " out of the closet" while responding to their new vod product.

It's possible (by the by, I edited in a clarification, sorry for not putting it in the first time). The problem is that Iwata never said "out of the closet," or even anything close to it. Read the full official translation if you don't believe me.

That phrase is the article's author's own submission, i.e. how he interpreted Iwata's statement that "According to our internal research, 87% of Wii consoles are connected to the largest TV screen in the household, which is set in the centre of the living room."