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Nintendo needs to make some changes. They need to become more western-orientated (at least for the home console market) and really work on their relationships with third parties (once again, mostly in the west). I'm not sure that means Iwata needs to go.

He clearly has made some great decisions for the company, the most recent one being merging the handheld and home console development groups into one, so that future hardware will be more integrated with each other (or they'll simply make the home console-handheld hybrid I've been dreaming of).

He needs to step away from Nintendo Direct, though. He's terrible at advertising their projects in public compared to guys such as Kaz Hirai or even their own Reggie.