Hardware power has always mattered. The SNES would've lost to the Genesis if it was just a overclocked NES. The N64 wouldn't have gone anywhere if it was just an overclocked SNES. 

People need to realize the Wii is one exception to the rule ... not the rule itself. That whole formula simply doesn't work unless you have a Wiimote type phenomenon to drive sales. 

And it's next to impossible to recreate that every 5 years like clockwork. 

So far Wii-U is now officially the worst selling Nintendo console in history, BY FAR:

Shipments first full year:
Gamecube: 5,71m
Wii-U: 2.8m

That's less than half.

The sad thing about the Wii U is it's not even much more powerful than a 7 year old XBox 360, yet it's forcing Nintendo to bleed losses even at $300.

Over engineered to the max (who cares if it consumes only 30 watts, Nintendo? Are you making a portable machine?) means Nintendo is paying out their rear ends for a low performance chip just because they have a massive fetish for cute, small system casing with a $100 controller gimmick that casuals are oblivious to.

It's a nightmarish design. If you're going to make a lower specced console for crying out loud at least make sure it's cheap to manufacture. 

http://www.nikkei.com/article/DGXNASHD1700Y_X10C14A1000000/

Looks like Iwata was quoted, in nikkei, and it looks like he's NOT resigning; however he's apologizing for the bad performance and is looking to fix the current situation of the short term.

In other words...Please Understand.

I used to own Nintendo stock but I ditched it a while ago, but if I was a stockholder, I'd be irate. 

Same empty promises, same excuses. 

so would you care if this guy actually significantly improves Ninty's sales

From NeoGaf, but it kinda hammers it home:

Iwata says Wii will avoid major droughts that plagued GameCube. (March 2007)

Iwata promises that 3DS will avoid major droughts that plagued Wii and DS.

Iwata promises that Wii U will avoid major droughts that plagued 3DS and Wii.

Iwata apologizes for Wii U drought in January and February.

With every freaking hardware launch Iwata also gives the same "this time we're going to focus on getting third party support" speech too. 

It's maddening really. 

Please Understand? 

I don't think "firing Iwata" will solve anything really, what they really need is a realization to...well...reality. Iwata literally needs to please understand his situation and how his current order is creating these losses and missed forecasts. He may have caused the company's only operating losses since entering the console market, but he was also the man who created the most successful environment for Nintendo ever (Wii and DS). I don't think he'll be going down anytime soon, as much as some people want him to. 

But that's the point; Sega had a lot of 3rd party support as well, and they nearly kicked Nintendo's ass! Nintendo won because of their 1st party games, but Sega put up a good fight. And just look at PS3 vs X360; MS took half of Sony's market share by having the same 3rd party games. 3rd party games DO matter. They're very important if you wanna remain competative. Just look at the Wii: it wouldn't have stopped selling as fast as it had, if it had good 3rd party support.