Well, Nintendo isn't trying to compete with third parties and Iwata was right when he said that.
However, third parties kind of forced competition on Nintendo. By not creating new markets on the Wii and just imitating Nintendo. And when there was original games put on the Wii, they are hardly marketed and didn't sell well as a result, causing third parties to think the Wii was 'bad for third parties'.
In one way, Nintendo isn't competing with Third Parties. In another they are, because third parties see them as the ultimate model to imitate. Or at least they feel that Nintendo is generating so many sales, it may be hard to take a chunk out of that Mario Kart/WiiFit/Mario pie.
But since they do in quite fine on DS, I think they just need to stop whining and try.
Six upcoming games you should look into:
