Nintendo: CD isn't quite there yet.
Nintendo: Online gaming isn't quite there yet.
Nintendo: High definition isn't quite there yet.
...
Maybe it's a cost thing not having to deal with budgeting pressures of developing a more graphically intensive / socially integrated game; I don't know.
Not that they've never been innovative (if anything they're quite innovative); but Nintendo have always been a bit resistant to some things which have been pretty definitively identified as a market direction. The above being just a few examples.
VR in the current Oculus / Sony Morpheus renditions isn't as definitive though, so as a case point Reggie might be right about the current format of VR. But VR WILL come around and I can't help but feel like Nintendo will miss the boat when it does happen.