Wii Music didn't live up to the company's expectations, but he doesn't want you to consider it a failure, either. During a recent Q&A session, he spoke about the company's hopes regarding Wii Music, as well as the difficulty Nintendo has had with consumer reception.
"There are people who highly appreciate it and those who do not appreciate it at all," Iwata said, adding that perceptions can be changed. It's all about word of mouth to him, as he said, "A cycle is born where people who have hands-on experience can immediately understand its appeal, easily explain the positive experience they had to those around them, who then spread that information to the others." That works, unless you're a blog who pretty unanimously hated it and told everyone how you felt.
With Wii Music, the company was never able to achieve this "positive cycle," and Iwata says Nintendo now needs to "reevaluate" why it hasn't been able to "clear that hurdle." Nintendo, here's a protip from us: Emphasize that it has a dog suit and beatboxing. You might sell a few extra copies if you push that.