Iwata noted that it is more difficult now to invent surprising new styles of game with smartphone developers doing weird stuff by the boatload. "However," he said, "the company will aim to develop and launch products that can provide meaningful surprises to the public by taking advantage of the company's position of being able to make new proposals that integrate both hardware and software, and of its ability to develop products that can be accepted by a wide variety of consumers, irrespective of age, gender or past gaming experience."
After all, you can't bundle an iPhone game with a balance board or something like that. Well, you could, but wouldn't. Nintendo still has that advantage.