I actually didn't think his original comments were all that unreasonable, and it definitely seemed like something that could have a signficantly different meaning when translated in a slightly different way.
Frankly, I've noticed these types of problems a lot -- I think S-E's Wada was victim to it with the "toy"Wii comment, which he also went out of his way to correct with the specific explanation that the sentence was misinterpreted.
In the scores of pages of text translated from CEOs and CFOs of all these various software companies (most of which we never see, because it's boring), I'm sure that every once in a while, something gets interpreted in a way that might be ever so slightly offensive to someone or some system, and I'm also sure that Western press outlets are more than happy to run with that technically-correct-but-slightly-off-the-real-meaning translation, because controversey sells papers and creates site hits.
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