What he's referring to is Sega during the early to mid-90s, when they just kept on making all sorts of bad decisions. First they released the Sega CD, which was expensive, awkwardly needed to be attached to the Genesis to work, was given poor support, and ultimately ditched. Then there was the 32X, which was given the same treatment, fared much worse, and was released at an awkward time (basically, months before the Saturn was slated to release). And then the Saturn, which came out even earlier than previously announced to select retailers (generating bad will among those that didn't get stocked at that point, as well as companies that were making launch titles for it), was run into the ground with even more bad business decisions. All of these actions wrecked both consumer confidence in Sega and pissed off developers, and it's why they had to eventually withdraw from console development.
The Wii U and Nintendo's treatment of it, from their hasty release in-between generations to their schizophrenic marketing of it, and this apparent release of a new console in a short span of time, is eerily similar to the way Sega handled things back then. And like the CD, 32X, and Saturn, it's gonna' be a black spot on their record for both consumers and developers.