This was clearly intended as an attack against the Wii, but (in my opinion) it comes across more as an insult to third party publishers. Essentially, the comment could be interpreted as "You third party developers produce such low quality formulaic games that you will never be able to compete against Nintendo" ...
Nintendo has been far more successful than third party publishers on the Wii, but Nintendo was also the only publisher who used their best developers to produce high quality exclusive games for the Wii. I think only a fool would argue that an exclusive Final Fantasy, Metal Gear, Grand Theft Auto, Resident Evil or any well known high quality franchise would sell poorly on the Wii (or any platform); I'm not (necessarily) saying that these games will be ensured the level of success that they achieved on the PS2, but I do believe they would see similar sales to what they will achieve on the PS3 or XBox 360 (and similar sales to the best Nintendo games).
