I some ways, what Iwata says perfectly resonates with how Nintendo makes their games. Their games typically have simple controls, an easy learning curve and most of them are made for general audiences instead of focusing strictly on kids or strictly on adults. What also makes sense about what Iwata is saying is how Nintendo talks about their own games. They talk about the play mechanics and how they work. It's the total opposite of another company like Epic games who will practically be masturbating on stage to their own game engine and talk about small mundane details that most people aren't going to notice when playing a game.
This also resonates with certain things Shigeru Miyamoto has said in the past. For example he once said that when creating certain scenarios in a game, he often thinks about how the player will react to it, the expression they might get on their face. So when Nintendo says they're trying to make whatever audiences will accept, keep in mind that what they do is theoretical. They have to predict how audiences will react to their products because their is no real way of knowing and Nintendo isn't the kind of company who obsesses with focus groups like Microsoft.
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