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Like most people already posted: I think the statement is true when looking at the Japanese industry without Nintendo. This has been said for the past five years though (not by Namco) by various sources in Japan. 

 

Everyone was shocked when Nintendo made the impact and foothold they made with the Wii (the handheld market has always been dominated by Nintendo so I won't include that as landmark). Nintendo was actually bucking the trend and won over the real gaming market (the casual consumer and the mass population).