Does the Crave DS game "Baby Pals" really say "Islam is the light" when you give your tot a bath? Of course not. That's ridiculous. Doesn't stop WTNH from reporting it, though!
Like the more widely-publicised issue surrounding the Little Mummy Cuddle and Coo doll - from which the baby's audio sample is presumably taken - the baby is speaking in gibberish. A simple background check on the "furore" surrounding the doll could have told them that.
Likewise, a phone call to developers Crave - look, the logo is right there on the box in the report! - could have settled the matter, instead of trying to ask Nintendo about a game Nintendo didn't develop.
Ah well. "BABY GAME SPEAKS GIBBERISH" wouldn't be as interesting an angle as "BABY GAME IS ISLAMIC CHUCKY", would it?