If they had hardware ready to go right now, you can bet they'd be launching it
His concern is not for the next generation hardware ("While he admitted that it was too late to change this cycle this time around..."), but for future generations. It'd be my guess that Nintendo doesn't want to spend the money necessary to keep up on the hardware side. And their past products show that.
The entire article is full of crap though... it's typical marketing speak from someone who is so wrapped up in their own product that they're blind to how consumers think.
Here are some choice quotes:
quoting a statistic which showed that 33 per cent of GameCube purchasers last Christmas already owned a PS2 or Xbox
And how many new purchases of a PS2 or Xbox already owned a GameCube? I'd bet a lot. How much do you think the price cut figured into that decision? And why, praytell, wasn't your console the first one bought instead of the second or third?
"Every free game is taking away hours that could be spent playing games they had actually paid for - imagine that!"
Horror. Shock. Of course, without those free games the consumer may be spending time
never buying your product. Some game bundles are crap, and most consumers won't be lured in by that. Bundle decent games and you're likely to increase sales, because the games represent added value. If they weren't added value then your customers wouldn't be spending time playing them.
Oh, and if they are bundling in crap games, then maybe you should review your own developer licensing and figure out why you're allowing crap to exist in the first place.
He went on to argue that it was in the power of the industry "to avoid artificially triggering a new generation before we are ready to deliver it."
Hey, that's fine by me. It'll just increase the technology gap between consoles and PCs. Won't change the essentials of what gameplay works better on what system, but developers can be just as tempted by shiny baubles as consumers can.