If you want to stay in business you identify everything coming along that competes with your product as a threat and determine how to counter it. Boeing and Airbus are looking at the new Embraer and COMAC planes as threats to their smaller single aisle and are planning on doing something to make theirs more competitive (re-engining or redesigning depending on the article and day of the week). Those aircraft aren't even on paper yet, and that is a helluva lot more expensive than redesigning a gaming device.

You don't make mistakes like ignoring something that may turn into competition if you want to be in business as long as Nintendo. I don't think that statement means nearly as much as you are thinking it does.