Hearing about NIntendo's financial struggles have made me very deppressed. However, now  more than ever I'm hearing people cry that Iwata needs to go. 

Why though? Are they just looking for someone to blame?  At this point I don't know if there's anything they can do.  Apple owns the casuals and Sony and Ms own the hardcore.

So why exactly are people blaming Iwata? What did you want him to do? I'm not trying to defend him I just honestly want to know. 

People just refuse to understand.

Blaming Iwata seems to be the easiest route to pass on the blame. What's funny is that this is his first miss out of three consoles (3DS fixed).

Am I the only one that thinks that the Wii U could have picked up had they done what they did with the 3DS? You know, 3D Mario and a few weeks later MK?

His decisions.

I think Iwata is doing about as good as he can with what they have. I honestly believe that the Wii U is a capable enough system and that it would be in a worse position with more power. There are a few things it could benefit from (ie; Media player, Achievements, key 3rd party franchises like WWE and NFL) but really, it all comes down to "heat" and the competition just has it.

The 3DS is doing great and the Wii U will hopefully have a library that can't be ignored. Without some sort of hook like the Wii had, Nintendo consoles just don't have the appeal they used to have. Microsoft and Sony are just able to pack so much more into their box and Nintendo isn't willing to risk that kind of money in partnerships that may or may not pay off.

Maybe because he has guided Nintendo through more bad periods (2001-2006), (2011-) than more good periods. He and his staff inability to read markets and their changes
back to back to back losses in terms of operating income under his reign
Making the Wii U and 3DS like the Wii and DS when those markets clearly moved on
Not taking advantages of lead in dedicated handhelds vs Sony
No plan B when everything blows up in their face...the list goes on.

Some more:

Stripping north america of their own decision making and thinking that Japan know whats best for this market.

Iwata just carries the burden of responsibility, although it's not really his fault that dev teams were not accostumed to HD game production and hence missed their release targets.

Personally I think he should have invested heavily in more 1st party studios in 2007-2009 as that could have helped drastically improve the software situation for 3DS and WiiU.

Yes that would be optimal, but the games don't just pop up out of thin air! They aren't going to release an product. Or are you saying they should have delayed releasing until they were ready?