Iwata seems to forget that the industry has, for me since the Spectrum and C64 and through the consoles, PC graphics cards always been about pushing technology and power, the industry was not going there ........ it has always been there.
And for his "philosophy" on "low power - low cost" ................... The 3DS is a poor spec and cheaply made and it released at the same price the Vita did and I guarantee that the next machines from Sony and MS will not be much further North than the price point the Wii U released at, which is hardly cheap and its is low power.
Nintendo philosophy is not "low power - low cost" ............ it low power, cheaply made and high margin, and its not working, especially for the Wii U.
The Wii U does not represent a generational jump to the people who have played 360 and PS3 for 7 years, and that's why most of them won't touch it with a barge pole, it represents a sideways step and not a forward leap and it is has hurt them.
You can state about "no games" but the perception of the Wii U is not about the lack of games, most perceive to be an underpowered turkey that next gen games will be skipping, and we are hearing that from all and sundry.