This is similar to companies refusing to switch to environmentally friendly methods, even though they have developed to the point where the profit margin is greater.
If it involves a cool toy, like a machine that does the work of twelve people, they will jump on it, due the perfectly understandable reason of getting more money.
Yet if it comes from something they hate, they won't take it. Environmentally friendly methods would be like admitting the liberals are right, even though there can be just as many conservative values served by it (more efficient methods are also proof of progress, and the reward for hard work in developing them).
Thus it is with Nintendo. Yamguchi is a good businessman, but he did treat third parties almost like employees. Yet it is third parties fault for thinking twenty years ago is still happening. Iwata is a developer, and he understands their situation. It's the third parties fault if they don't want to deal with him, even if having games on the system, even smaller and multiplatform, means more money.
A flashy-first game is awesome when it comes out. A great-first game is awesome forever.
Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs
