TLDR: Iwata basically said that XBOX/PlayStation focusing only on chasing power/performance/visuals over time vs gameplay innovation will lead to more complicated development cycles and fewer output of quality experiences for people to enjoy.
Dude, Nintendo is in the same boat. Zelda Breath of the Wild needed many time to make (6 years) and Zelda Tears of the Kingdom was release 6 years after BOTW (with the same mechanics enhanced and the same world, not from scratch).
Same for Mario.
Odyssey (2017) is the last 3D Mario since Galaxy 2 (2010) when Galaxy 2 was the same mechanics of Galaxy (2007). So the next mario gonna be released on Switch 2 on 2025, almost 8 years after Odyssey.
And Furukuwa said in the last interview. "
Game need more time to make (longer) and difficult"... but don't also say "
game need more money to make" to not to shock investors.
Mario Kart 8 is a WiiU games.. How to sell Mario Kart 9 with 75% content less than Mario Kart 8? That's the big difficult for Nintendo.
The fall of the WiiU was beneficial for the Switch. But I don't think the Switch gonna be beneficial for the Switch 2. Just look how many people stay on PS4.
Nintendo is in the same shit + now everyone copy the Switch idea (Steam Deck / Asus Rog Ally / MSI / Lenovo).
The big strengh of Nintendo is owned IP and the futur gonna be the battle of IP, not performance or gameplay. (who cares gameplay when people in the world play gatcha shit on smartphone?)