I think he has done many things well. His major mistake as CEO was not re-investing the massive money earned by the Wii. They should have realized that Wii would be in trouble as HDTV's were taking off. 3 or 4 years ago they should have spent some of their billions in reserve to start or acquire some high-end studios that could make some system selling games on an HD system. They should have had 2 or 3 really stunning titles ready for Wii U launch in addition to what they had, and in other genres. They needed titles for the west and east both. Their cash reserves are doing nothing for them. Wii U should have been ready to launch and kick ass in 2012 (or earlier), but instead it stumbled out of the gate. This is a major mistake.
How Iwata recovers from this blunder, to me, should determine his future. If he doesn't have a really good plan, then he should go.
Personally, the only solution I see to turn the company around in the near future is for them to buy a couple major publishers such as Capcom and Square Enix, bringing those titles exclusive to Wii U and forcing fans to buy it ( and giving them much less reason to buy a PS4). Bold, aggressive and dirty, but it's the only tactic I can see turning momentum around until Nintendo's next device is ready.
