"If we are unable to see a positive response at E3, this will have a disasterous impact on Nintendo...and we may have to consider freezing the Gamecube business altogether."
Yikes! Holy bad translations batman! He's actually referring to the release and holding back the console until they can get a positive response. Nintendo is of course confident that wont be the case though:
We have high hopes for the show and are confident the games will impress and astound attendees."
From all the images we've seen of GameCube it's mostly just younger audience target games with the exception of a few. Keep in mind though a ton of games will be announced next month at E3 and we'll have a much more clear picture of what is going on. Should be fun to see Nintendo and Microsoft fighting for the console market.