..great.. more grandstanding and strange insinuations along with quotes out of context. Awesome.
What's interesting about this is that Iwata doesn't want to compete with social interconnected games on multiple platforms - but on closed platforms for a limited market. That's what Apple is doing, and that's what Nintendo is steering harder and harder towards. They've obviously never done anything outside their own platform - but simply categorically dropping the idea of running DS games as applets on smartphones, or expanding them to web-browser games.. It's interesting that Nintendo would declare that direction so clearly.
Meanwhile, this is the opposite of what Sony is doing with their handheld. It's still typically geared on interconnectivity between their own closed platforms, of course. And no doubt the idiots with the money are going to scuttle any sort of real attempt to integrate services across the different platforms (say, video-services they offer internally, or while offering a platform that covers several devices for external services like Netflix, etc). Same with games - having interfaces on game-devices that are interchangeable, as well as a platform with common interfaces, is going to allow branching out to new market-segments. And get games and digital entertainment into the hands of more people, and different people than we have right now.
So that Nintendo is cutting that off - just categorically stating that their entire "from 6 to 60 years" audience isn't going to extend to social gaming on the internet, or across devices - that's the news here. Pachter may or may not be hinting to this, I guess. But he's only ever on target by accident, so who knows..