Out of context Reggie's quote sounds stupid. The full context is:
The company made 2 million units available at launch, despite, Fils-Aime said, analyst recommendations that demand would be much lower.
"We actually sold through almost 2.8 million units, so we dramatically over delivered. And yet, demand outpaces supply,"
In other words, Nintendo planned to make 2 million units at launch despite analysts recommendations; Nintendo overdelivered on that 2 million unit goal with 2.8 million instead and still couldn't meet demand.