The bolded part pretty much explains all of Nintendo's problems in one sentence. Nintendo need to move away from those antiquated methods if they want to remain relevant.

As for the rest, the consumer electronic market is huge and there is an abundance of people working in the industry with knowledge and a vision to innovate and engage consumers.

I'm interested to know do you think Iwata has a full comprehension of the consumer electronics market? The man who gave us the Wii U and thought adding 3D to the DS would be enough to make it sell just as well? The man who thinks region locking is essential for consoles. The man who said consumers wouldn't be able to tell the difference in graphics between the Wii and PS360. The man who thought the Wii brand was still strong in 2012. The same man who thinks the Wii U will sell 8.6 million in next 6 months. I could go on, but you get the picture.

Okay, well, if he isn't going to resign, who is it that has the authority to fire him, and why haven't they done it yet?

Lot o wishful thinking going on. His job is secure.

yea same here.  pretty sure Iwata cleared this up months ago.

If it were up to me i would fire most of the CEO'S in this industry and iwata would be the one i really think hard about if i should depending on the options who would replace him

He was the president of HAL laboratories, the company that created Smash Bros, Kirby and Earthbound. - http://www.hallab.co.jp 

The company that got their namesake from trying to be one step ahead of IBM, the letters "H-A-L"  are one letter preceding "I-B-M".  

He was one of the creative minds there and rose to lead the company (HAL) and made an impression on Mr. Yamauchi.

Yes, tradition is the whole problem and we see this but do you think Nintendo sees this? The age-old saying in here that goes; "Nintendo know what they're doing" is probably one Nintendo themselves subscribe to, that's probably the main reason they're allowing Iwata to disgrace himself by not lowering fiscal projections.

Iwata clearly does not have the full comprehension of the consumer electronics market, especially his inability to understand the impact and importance of online gaming and features in the 7th gen show this to a great extent, and I never claimed he did. What I said is that a new head would need to in order to set things straight and give them a chance for better days.

There are two huge parts of the equation here; Nintendo themselves need to see the need for new leadership and a new leader will need the above mentioned qualities so succeed.

Iwata seems pretty good.

I would be super sad if Iwata stepped down. Personally, I happen to like the fact that at least one of the "Big Three" is run by a man who actually used to be a game developer, so he actually understands games and gamers. Some people may well argue that Nintendo as a whole is "out of touch" with online or this or that or whatever, but I'd trust him over the usual corporate shills you get. Plus, the man helps bring us Kirby, Earthbound and Smash Bros......there's not a whole lot to hate.

And quite frankly, I really don't see how anyone could be calling for his head, just because Wii U has had a rocky start (which was totally avoidable, but still). After the success of DS, Wii, and 3DS, I don't really see how Wii U struggling right now is grounds for walking papers. If anything, you could very well argue that Iwata "saved" Nintendo. I don' think they were in danger of going anywhere, mind you, and still don't, but it was his and Miyamoto's idea to go in the direction they did, with DS and then Wii, that really brought Nintendo back into the limelight.

3DS got a slow start but recovered fairly quickly and is now a big success. Wii U is the only one that needs work, and I still have faith they'll get it done. The problem now is the same problem it's been since Jan., it just needs more fuckin' games.

The word you're looking for is "prosperity".

Also, Iwata was competent enough to make Nintendo literally billions of dollars with DS, Wii and now 3DS. I'd call that more than competent enough. Nice try though.