Iwata wants to continue the legacy and heritage of nintendo and i think thats great. but and a big but, nintendo needs to listen more to the consumers and what they want.
Sometimes, a competitor presents a large amount of risk in simply providing a consumer what they want (through traditional means of customer utility-or rather, currently defined mechanisms).
At this point, Nintendo has to go through 2 large companies for the retail royalties from third parties and overall platform sales (which translates to software sales from first party).
Basic financial principles dictate that they must strive to at least make a return equal to the risk free rate+the risk premium if they were going to invest capital in a project (otherwise Nintendo would be better off investing in the stock market to make that minimal return on retained earnings).
In short, looking outside the box, or how Nintendo can be a part of everyone's life in addition to a PC, Playstation, Xbox, Smartphone, or tablet is a very encouraging strategy. I cannot wait to see what they come up with.
To respond to you directly-Nintendo could listen to consumers, but make under the required rate of return for investors through several periods. This plan will have this possibility, but internal predictions will show one or the other being the best bet, or providing the highest probability, of having the highest return over time.