Iwata: "PSN and Live too far developed for us to catch up"

[Mr Khan]

I don't see what Nintendo Network won't do that, say, PSN can (and LIVE to the same extent, maybe barring party chat features). There's going to be non-game content, online multiplayer, the ability to connect with the community, VC/Wiiware and downloadable retail games

What is the competition doing that's so far ahead of that?

I think this is more a declaration that Nintendo isn't going to be pursuing parity with the competitor networks.