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kowenicki said:
Why are people surprised at his negativity...?

Sales of the Wii to consumers are down almost 30% year on year - year to date.
Ninty profits are down 50% when comparing first two quarters of the financial year 2009 against 2008.

He hasn't got his head in the sand which is good.

This.

Reversing that trend and regaining momentum is very very difficult, Iwata has acknowledged that. We won't see what Nintendo plan to do until early next year. It's possible they'll have a massive fourth quarter in all territories that rebuilds Wii momentum. With plenty of stock through the Christmas period and after it, with a lower price point and NSMBWii, I think now is the best time for Nintendo to regain their momentum. If that happens, then we'll see how Nintendo hope to continue that momentum. If not, then they'll have to find another way to regain momentum.