It needs to be done. NOA needs to be completely turned upside down. I'm not saying Iwata (or even Reggie) need to be fired, but a new person for NOA needs to be brought in, one who Iwata will be forced to listen to and has the authority to greenlight their own projects for the Western market. In other words, Iwata can stay on, but his overly Japan-centric way of viewing things needs to be balanced out.
Clearly NCL is clueless about the Western markets and they have largely bumbled away all the momenteum Nintendo had with the Wii/DS 3-4 years ago. If Square-Enix can work with Eidos to expand their software reach, Nintendo should too.
The marketing divisions for NOA and NOE should be fired and replaced as well. That Wii U marketing campaign is the most uninspired and lame marketing campaign I've ever seen for a major game platform launch. Unacceptable.
I think Nintendo should also see if they can pursue more collaborations with Google. It's time to start being more proactive about the future.