The graph doesn't include sales bundled with hardware.  That's also why WSR is so low comparably, and Wii Sports is missing entirely.

I saw the context, it is still false, it has lost tremendous amounts of momentum compared to last years and especially compared to the competition. His insistence on comparing the graphs with the longlived PS2 puzzles me...

So you'd prefer that he not compare his console to the best-selling home console of all time, especially when that comparison is favorable to his product?   The Wii is following the usual console sales curve, so its year-on-year decline is not unexpected.

As for your other point, let us be blunt: the PS3 and 360 are experiencing abnormal growth curves, and more power to them for that, but they're still never going to outsell the Wii.  If you're Iwata, it's much more interesting (read: influential) to say that you're on track to outsell the top-selling system of all time than it is to say "the contemporary systems are now outselling us: at the current rate, they'll top us in XXX years."  It's certainly less influential to say that to investors.  So is it an incomplete picture?  As I said, yes.  Is it a false one?  No, it is not.  It may not be what you want to hear him say, but it's not a lie either.

I saw the context, it is still false, it has lost tremendous amounts of momentum compared to last years and especially compared to the competition. His insistence on comparing the graphs with the longlived PS2 puzzles me, the Wii competes with the PS360 and the assured hardware record the Wii would set (selling more lifetime than the PS2) just a year or less back in time has now become moot headshakes and disbelief, it will never reach that goal at, showing that;

A: All projections from both Nintendo and Vgchartz analysts were wrong, how many times has TheSource assured everyone that the Wii is well on its way to easily beating the PS2's lifetime sales?

B: Going by point A, it has to have lost a whole lot of momentum for all past projections (including Nintendo's internal fiscal ones, lowered two times in under a year) to have suddenly been rendered comepetely worthless.

Edit; Iwata also adresses the US only market here, yet another factor making his statements confusing at best. Its not doing so hot in Japan and is being soundly beaten in EMEAA.

But, this is the exact type of spin that people have condemned Sony and Microsoft for this entire generation. I expected more from the msot venerable sould in gaming today.

PS: The Wii's year-on-year decline is as unprecedented as its tremendous sales in the beginning (this kind of decline occurrs for every console but not directly following a very strong sales year and certainly not while the runner up's are experiencing growth, the Wii curve anything but typical, as is this entire generation). The brightest flames burn quickest.

But, this is the exact type of spin that people have condemned Sony and Microsoft for this entire generation. I expected more from the msot venerable sould in gaming today.

PS: The Wii's year-on-year decline is as unprecedented as its tremendous sales in the beginning (this kind of decline occurrs for every console but not directly following a very strong sales year and certainly not while the runner up's are experiencing growth, the Wii curve anything but typical, as is this entire generation). The brightest flames burn quickest.

According to the last graph, ModernWarfare 2 is a lot bigger than Halo 3 in the US and both of them sold less than 7 million.

According to VGChartz, Halo 3 sold more ~8.07 million in NA and Modern Warfare 2 sold ~8.01.

Copied from Gamasutra....

Japan has been the brightest spot for sales of the Wii, Nintendo's data shows, with overall sales rising to represent over 50 percent of the home console market so far in 2010, just ahead of the PS3's 42 percent share of the market.  

The Wii's low failure rate will mean that it'll probably never beat the PS2 :(