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People talk about Sony as if they were the peak of the industry.
First. Iwata has led Nintendo to the best console generation and handheld generation.
No other Nintendo console has sold more than Wii, nor handheld more than DS. Sony has been falling since PS2 by their own arrogance selling expensive systems when they just have to bring a new console upgraded. They have been loosing money for the last 7 years. Nintendo lost money not because of Wii at the end of its cycle but because of Iwatas decision on 3DS price. In my opinion, it's the only mistake he has made.
Second. Just because Nintendo aquire new studios doesn't mean that they are going to produce successful games. Look at Sony, bying western studios right and left, but they can't maintain a proper quality control on all of them. How many studios has Sony released in the last year? exactly. Look what Nintendo usually does: Retro Studios, at the beggining, had 4 projects but they did complete none of them. Instead of firing people, Nintendo sent Miyamoto for one last chance, enlighthing retros creativity. Those are the decisions that change the course of the things in a good way.
It is just simply hard to transition to HD. Look at all this big publishers closing left and right. Nintendo has the idea of how to be succesful, Iwata has it, by partnering with other studios instead of buying them strengthening both at the same time without risking their jobs.
New ideas need time to progress, more time if they are good.
How many times has we heard about a Nintendo strategy that make us laugh? But then they laugh at us, in a good way, because none of us can see beyond what our eyes can.
Nintendo needs to keep being Nintendo, its their only chance in this unstable industry.
Iwata will make mistakes, but who with no mistakes is succesful?