Actually, that IS pretty close to what Nintendo, or Iwata, actually implies. This last gen Iwata's rhetoric has had this messiah complex tinge to it where it almost sounds as if Nintendo feels they have to compete against all the possible ways people spend their entertainment time and dollars in order to preserve "videogaming" against irrelevance. Especially when going after the blue ocean gamer, they know they have to compete for attention with movies, books, tv, etc.
I think it's probably more accurate to say that Nintendo isn't competing JUST against Sony and MS. They see themselves as part of a bigger entertainment picture, where a bevy of factors aside from hardware musculature are of great import.