Iwata is right. They need to be different and not fight Sony/MS on their own turf. That was the mistake Sony made this gen. While PS2 was the core/casual machine and Xbox was PC/core, PS3 launched directly targeting XBox's market and lost all their casual market to Wii and lost the war of attrition (which admittedly is still happening) for the core in NA to 360 (but won in PAL/JP). End result - greatly diminished presence in the video game scene.
No matter what, Nintendo cannot win a war of attrition for the core. We all know it. They shouldn't try.
The problem is, this statement flies in the face of what Nintendo was saying E3 2011 about winning the core back. It's more like Nintendo wants to make WiiU palatable for the core.
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