Nintendo needs more western studios and more original western IPs to appeal to the west.

[foxtail]

Soundwave said:

1990s/early 2000s Nintendo >>> modern Nintendo. The only thing that keeps it even close is EAD Tokyo's brilliance. 

Games like this (original IP from Western devs) would not get made today under Iwata:

GoldenEye 007 - Rare (->Free Radical)
Eternal Darkness: Sanity's Requiem - Silicon Knights
Conker's Bad Fur Day - Rare
Excitebike 64 - Left Field
NBA Courtside 2: Featuring Kobe Bryant - Left Field
Major League Baseball Featuring Ken Griffey, Jr. - Angel Studios (->Rockstar San Diego)
1080° Avalanche - NST (Nintendo)
Perfect Dark - Rare (->Free Radical)
Star Wars: Rogue Squadron - Factor 5/Lucas Arts

With the exception of Angel Studios all those developers didn't fare well in the transition into HD.

Their fates were to either be disolved, become dormant, to die.. or in one rare case be grabbed by the goolies.