See, what this exec doesn't understand is Nintendo is going to try to become the monopolistic marketplace to get content. Its not happening all at once, its a slow drawn out process. They want to displace computers and other consoles, but it probably can't happen for 2 generations. Its a long term posturing.
Its like playing a really good game of Risk. Iv gotten good at Risk without actually taking continents at the first part of the game. Some would say that's crucial. But if you do it right, you can dominate and control a game from the beginning by using everyone's typical strategies against them. However, as the name of the game implies....its risky.