Yeah you have to take into consideration that circumstances between Sega and Nintendo have not always been smooth and may have worsened since the Cube's failure to sell Sega's exclusives at the level they thought they would.
I'm hoping this is Sega just being sour and not being right. If they were right all the time they wouldn't have fallen from the top of the industry to third party.
What he is saying though is wierd. I can understand that Nintendo might not have the most powerful next gen system, but he talks like there is no next gen system from Nintendo. He makes it sound like they are either abandoning the console market or making some new console that is half the power of the next systems from the competition. I would rather see Nintendo become a third party than see them release a beafed up GameCube that doesn't get supported by anyone because it is so uslessly weak compared to the competition it won't sell. They might be taking the idea of budget console too far. I know that things are getting more expensive and complicated in the development process but that means you have to sell games Nintendo. That means you have to open your ears and give people what they want. They want some new games. It seems really stupid of them to preach innovation and revolution and continue to pump sequels upon people. Noone is taking Nintendo serious about their next console right now. Too many people even thought the DS was not going to see the success of past GameBoys. Everyone is expecting Nintendo to release something underpowered and underdeveloped for children with emaculately polished ports and music games. What happened to making adventures, quests, stories, and worlds in complete games that emerse the gamer in the fantasy? People look at the Cube as a big lie that Nintendo told them about mature Mario games (it was a really BAD choice of words), a video of a mature Zelda, promises of more third party support, enough buttons on their controller that it couldn't be called inferior, Rare games, and Too Human. Noone trusts Nintendo and its Nintendo's fault.
What the hell does he mean by handsets?
The rule of thumb is that if you're a small developer you will either develop on the handheld or the console that has the most users, most developers, and lowest liscensing fees. Small developers are not going to take a chance developing games on a Ninetendo budget console next generation, they can develop a budget game on the biggest baddest system with the most users and be a lot more safe than they would competing with Zelda for a small userbase. The biggest developers in the industry are affraid of doing games on the Cube. The biggest developers with the most secure of franchises are afraid of the Cube because noone can figure out if a game will sell or not no matter what the game is. Noone trusts the Cube and noone will trust the Revolution if Nintendo doesn't change something. Ultimately it means they will be dead from the word go if they show something that not only has unchanged visuals, but does nothing new for console gaming outside of DS compatibility for the touch screen. How can it be a revolution if it is going to be billed as a secondary console? What is so revolutionary about it? I know, its revolutionary how fast Nintendo may destroy their legitimacy by calling their next system Revolution and not devlivering.