Nintendo's leadership is the problem. Iwata is a likeable guy, but among him and his board of directors (which are 8-10 others who are all 50-60 something year old Japanese men) ... there's something rotten inside of Nintendo.
You don't destroy all brand momentum from something as popular as Wii just 4 years ago, completely bumble the 3DS launch, then do the same for the Wii U launch almost 2 years later and send your stock price into the gutter unless something is very, very wrong.
Nintendo is simply not adapting to a changing market and they are paying the price for having limited vision. This also a company that has no idea how to market anything any more either.
Case in point ... why wasn't a big AAA type of game in the scope of a Zelda/Metroid Prime/Halo/Half-Life not greenlight as soon as the Wii U/Project: Cafe kits were being sent out 2 years ago? Nintendo had ample time and had a ton of money in the bank, yet they chose to greenlight this lineup instead and ignore the need for a big-budget showpiece title for the system. They are stubborn and out of touch, and also arrogant in thinking that they could continue to keep shoveling Mario + the mini-game formula to gamers over and over again without people losing interest.
