Ok, so much stupidity on this thread
They aren't talking about shovelware, or about NSMB not being the next big thing, or about Wii fit plus or Wii sports resort.
What Iwata is saying is that they were not able to find the next big thing, last year they thought that Wii Music would be the next big thing the next big success in their Wii lineup, however, when it failed, they didn't have anything waiting as a backup, and yeah probably some things that would have went further in the direction they hoped Wii Music would have gone were canceled.
This is why they showed off the Wii Vitality sensor, it wasn't supposed to be shown last year at E3 without software, but when Wii music flopped, they panicked and brought out the Vitality sensor before it should have been unveiled, before the software was ready.
This is why the price cut occurred, because they lost so much momentum, if the momentum hadn't been lost, the Wii would still be at $250.
Now the Vitality sensor is being explored as the next big thing, but that's still probably 8-12 months away, Nintendo is aware that they goofed, but not for the reasons people seem to be brining up on this thread.