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zorg1000 said:

i think you may be taking the quote about lowering hardware/software costs out of context though. wasnt that statement a response to their strategy to break into the Chinese market?

No, I'm talking about this:

"The way in which dedicated video game systems and their software are sold has not changed significantly since the business model of dedicated video game platforms was first established 30 years ago. Dedicated video game systems are sold for two hundred or three hundred dollars, on which standalone software titles are distributed for 30 or 50 dollars. This simple model received widespread support from consumers that enabled us to create today’s market. The decision to change it is the manifestation of our recognition that we cannot expect this model to work forever amid dynamic changes in people’s lifestyles."

https://www.nintendo.co.jp/ir/en/library/events/140130/03.html

This is when Iwata first hinted at My Nintendo in March 2014. I'm scrutinizing this part because he mentioned both hardware and software costs, but then only went on to describe a software solution with what we now know as My Nintendo. I think there is going to be something for the hardware as well.