He means it's 'dead' as in 'there are no new games coming out for it'. Maybe the remaining Naruto Gamecube games will make it, but there isn't much else worthwhile coming out on the Gamecube--the dead system.

There are more good games on the gamecube, outside of the crappy Resident Evil games (except 4). Go get Viewtiful Joe, Skies of Arcadia, Tales of Symphonia, etc etc. Care less about balloon people and enjoy the good games.