Miyamoto explains the shift away from casuals.

[Mr Khan]

Soundwave said:

Casual gamers are vapid. They go nuts over garbage like the Kim Kardashian game.

I think when he says passive gamers he means that casuals aren't willing to try even something like 3D Mario. Doesn't matter how great the game is it doesn't matter, they won't play it. It must have been frustrating as a master game designer to be making games devoid of any real substance and to be chasing gimmicks to impress that crowd with. 

Its like having Steven Spielberg work on reality TV instead of big screen movies. A waste of his talent.

This demonstrates a deep lack of knowledge of what makes Miyamoto's game design tick. Simple concepts, refined to a science, are his hallmark and have thus weighed heavily on Nintendo's design philosophy ever since. Wii Sports/Fit were classic Miyamoto, it's the "deep" games that are the departure (recall that he's the one who sidelined Rosalina's story in Super Mario Galaxy. Didn't want it hogging the spotlight)