Miyamoto explains the shift away from casuals.

[KLAMarine]

KylieDog said:

His words are hot air.

Says these things but no evidence from Nintendo they doing such things. Still got a forced Gamepad bundle when the screen and its gimmicks are a casual attraction, all their big efforts have been casual games and aside from maybe Xenoblade everything Nintendo is making is casual. 

"Their attitude is, 'okay, I am the customer. You are supposed to entertain me.' It's kind of a passive attitude they're taking, and to me it's kind of a pathetic thing.

Lawl at this line, yes, you fucking well should entertain us if you want our money.

Nice quote mine. Let's consider the whole thing: "[Passive gamers are] the sort of people who, for example, might want to watch a movie. They might want to go to Disneyland. Their attitude is, 'okay, I am the customer. You are supposed to entertain me.' It's kind of a passive attitude they're taking, and to me it's kind of a pathetic thing. They do not know how interesting it is if you move one step further and try to challenge yourself [with more advanced games]."

I'm pretty sure a sizable portion of the core gamers are looking more for a challenge than the sort of entertainment brought on by a film. Call it a hunch but I think when Miyamoto said 'entertainment', he was referring to entertainment that does not challenge.