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I do not think that this Interview was translated right. kotaku has reported that Wada spoke about the Japanese market as a whole. I guess the Interview concluded that he was specifically speaking about Nintendo when he was not.
-----------------------------------kotaku------------------------------------------------------------

Square Enix could always depend on Japan to snap up its seemingly endless RPG flow. Company president Yoichi Wada (on the left) has noticed a dip in core Japanese gamers. He points out about Japanese market growth:


...when it comes to games for core gamers, it's quite weak. Sooner or later core gamers will become impatient, and there'll be a point where 'real' games will resume growth, but it's not happening at the moment. However, for core games, the European and American markets are growing at enormous speed.


To capitalize on this expanding market, Square Enix is actively starting to look West, hoping to "develop a strategy to equal the moves made by Sega and Capcom, or maybe exceed them." Our advice: Mix up the genres, put out new IPs and go multi-platform. That means for everything. ----kotaku

Link: http://kotaku.com/342044/square-enix-calls-japanese-core-market-weak

This falls more in line with what Square has been stating about wanting to improve profits from western markets and diversifying the types of games they develop.  



If Nintendo is successful at the moment, it’s because they are good, and I cannot blame them for that. What we should do is try to be just as good.----Laurent Benadiba