That's not what he is saying at all. He said that when people think of Nintendo they think of Mario and Yoshi, which are "kiddie" characters so it turns a lot of regular male gamers off to the system. So that was a major mistake by Nintendo.
He says the reason why Nintendo will succeed is because of the unique experience that every single game will have thanks in part to the new controller that can detect movement in 3 dimensions. This will make the system very easy to use and will appeal to a huge audience.
