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What I get from what he is saying is that as a very small tiny company, Epic doesn't have the resources to go beyond the niche market that they are in, ie, young male adult into FPS. It's not that bad of a market to be in, I suppose.
However, to say that you will always and only stay in that niche this whole generation cycle, might make you look like early 2006 Sony PR statements.

And rather than trashing the Wii, he should be trying to figure out how in the world did Nintendo get not only 100% of the American buyers in January and February+ to buy SSBB before they stopped playing the Wii, (about a million of them), but another 577,000 who don't even play the Wii anymore, STILL bought SSBB!! (For a total of 1,576,990 in the first week.) I guess it's a variation on the Sony premise that PS3s could be sold without games.



Torturing the numbers.  Hear them scream.