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Note: This was in Nov 2005 shortly before the Xbox 360 was released and ergo it was before 7th generation of consoles began. So take everything he says (and displays) in that context

 

“Let's look at the install base for the last four generations. First thing to note: As recently as about a year ago, projections were made that the current generation would reach 60 Million household penetration: Ain't gonna happen. Ain't gonna happen. Another couple tidbits: So this chart is pure number of units sold. It doesn't take into account duplicate ownership, and doesn't take into account population growth...”

“...You overlay those two facts to get a percent population with a console in the household, and that's what it looks like. 8 Bit years, 31% of households had a gaming system. This year, where is going to end up? Somewhere between 31-32%. The growth we have seen has been driven by population growth, and by duplicate ownership.” - Reggie Fils-Aimé via Nov 2005 Nintendo Gamer's Summit

Transcription excerpts via IGN's “Reggie Talks Nintendo's Future” article (page 2): http://cube.ign.com/articles/664/664495p1.html

Actually there's a video of the exact same thing. I just wanted to see if I could trick you into reading. AhhahahahhAAAaaaaaaahhhahahahahahaaaaaaahhhahhahahaAAAAaaaahhahahahahahahha! No, but seriously, the video is longer so a short excerpt may be more convenient for most of you.