In my opinion, Nintendo cashed in on an appropriate strategy with the DS. Nobody saw Nintendogs or Brain Age coming. I figured both would flop outside of Japan, but Brain Age was in last year's top 10 for North America, and Nintendogs put Nintendo ahead of PSP for one month when it came out. These are not your usual blockbusters. How is PSP supposed to compete with this? It's not like Brain Age buyers would have chosen PSP instead if only it had had that Final Fantasy VII spinoff a little sooner. (Has that game even come out yet?)
It is partly a failure on Sony's part, the system lacks games, but for the sake of argument, PSP was winning North America until last May - when DS Lite and New Super Mario Bros. came out. I think Nintendo deserves 99% of the credit for DS' success.
Iwata's right, and I'm glad to see he's thinking this way. We already know Wii Motorsports and Wii Music are in the works - the company is not relying on past concepts. (LOL)