I think they changed their approach to the market. I guess they have capable people at the top who think clearly.

When asked about how they felt about their rivals, Iwata responded

"... rather than trying to identify a specific rival and to think about how to fight against it, it is more important for our unique business to always ask ourselves, and try to answer, such questions like "What does it mean to make people interested in something?", "What is worth spending people's time and energy on?", or "What do people find amusement in?" We would be glad if you understand that, as the basis, we are not conscious of any certain rivals."

from here: http://www.nintendo.co.jp/ir/en/library/meeting/100629qa/02....

I don't know whether this is scripted or not, but it was certainly a good read.