Problem isn't Iwata or Miyamoto
Problem is simply Nintendo reputation and the way Wii turned out for core gamers, it just wasn't a console that received sufficient parity in support from the 3rd party.
The "casuals" have moved on (iOS / Android Tablets), the core are happier on other consoles. The irrational Nintendo isolationist core of gamers are just too few.
MS had to fight very hard to gain their traction into the market and it took Sony really fumbling with having a $600 PS3 at launch that for first 2-3 years had inferior ports of many of the 3rd party AAA games, for MS to become market leader with X360 in the US core gamer market.
Nintendo meanwhile was content to say we don't compete with MS/Sony for those core gamers, cause we got these casual cow gamers that take any kind of shovel ware if it is even mildly entertaining. Unfortunately those cows moved on to iOS / Android Tablets are aren't coming back to waggle-ware shallow games.
Now maybe Nintendo realizes the core of gamers is all thats left interested in console gaming and none of their "gimmicks" (Wii Sports Club or Wii Fit U) are attracting the casual cows back. Not for a $300 machine that the casuals don't even know about... and certainly not to replay and get bored with "games" that they already got bored with. If they do, then how do they compete with MS and Sony in the 8th gen race without having the parity in support from 3rd parties... when their Wii U system is significantly under powered for 8th gen 3rd party games.
Wii U is basically a Nintendo exclusive game machine of which there are few each year... and you gotta have one of the other consoles for the vast majority of other games that will come out each year.
