I'm assuming it was a toungue-in-cheek comment, but it's not that computers are are making the games themselves, but when you can use the Unreal engine for every game you make, a lot the 'blanks' are filled in, and you no longer need 3-5 low-level developers to do that grunt work.
I agree that big budgets/bad sales are a factor, but that problem existed last-gen as well, so it can't be the only or even the leading factor.
Games are still selling like hotcakes, but the number of 'hotcake' games has declined, and I honestly think that's more because of bad/uninspired game design than people tightening budgets.
Also, Iwata said the 3DS game development is going to approach Wii costs, that's not something he would say lightly, and I wouldn't presume to know about game development for the 3DS (or any system) than president of Nintendo.
Edit: Ignore the last paragraph I misread BnM's post, but the point is still valid so I'm leaving it in.