If Nintendo doesn't bring in someone who understands the Western market better (and marketing in general), they are going to be a niche/legacy brand in about 10 years time IMO.
That's the one huge knock on Iwata -- he and his board of directors are clueless about the West (blaming it on Reggie doesn't hold water since he likely has no real power, which is how Iwata and company have set things up).
Replace Iwata or not, the company needs an injection of fresh blood in the worst way possible, particularly from the West.