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Changes on such a grand scale as these take several months, perhaps even years, to plan. Suggesting this has nothing to do with Mr. Iwata's tragic death. Instead I believe them to be a natural continuation of the earlier merger between the console division and the handheld devision.
In other words, these changes would have come anyway, perhaps even earlier in the year if it hadn't been for Mr. Iwata's illness and his sudden death.
I believe these changes have the potential to strengthen Nintendo, but it all depends on Tatsumi Kimishima.