This article encapsulates something I've sensed about Iwata for years: He seems to know exactly what the problem is and what his obstacles are. He just hasn't been able to actually tackle those problems for some reason.
The basic problem I see is that Nintendo don't have the capacity to provide as much content as is needed on their own, and they haven't had the relationships with third parties since the SNES days to fill in the gaps (and this situation gets worse as more competition enters the market, it used to just be Sega, then Sony, nowadays it's smartphones and Facebook gaming etc). Simply firing Iwata will solve exactly neither of these problems. No CEO can magic high quality product out of thin air, and this has been a problem since long before he was around.
This is essentially their whole problem.
Before him, Nintendo games were better and Nintendo consoles weren't restricted only for Nintendo's own games like it became under his wing. I don't care how much money Nintendo have if their games and consoles can't no longer satisfy me the way they did before. I would praise the hell out of Nintendo's profits if I was a shareholder, but I'm not, I'm a gamer and speaking as gamer I can't no longer defend what it turned out under Iwata.
Nintendo consoles became restricted to only Nintendo games because the N64 happened. The N64 happened due to third parties rushing to Sony in order to escape Yamauchi's draconian publisher relation policies. That damage was done probably long before Iwata had major influence at Nintendo. Iwata's task over the last decade has been to fix that problem, but he didn't create it.
I'm less interested in him "breaking promises" and much more concerned that he doesn't seem to be learning. He seems to be caught off guard every single time third parties don't get on board, as if he was confident that this time they'd truly be getting Bioshock and GTA.
Since at least the middle of the Wii days, they should have been operating under the assumption that those parties will never be coming to their platforms and adjusted accordingly. If they ever came, it could be seen as a bonus. Instead, they seem to be constantly caught flatfooted, sure that this time they've finally created a machine that will attract the Western AAA developers, and when that doesn't happen it leaves gaps that they somehow were not expecting.
This is what we've been discussing in other threads. I'm about ready to say that Nintendo should give up on most of those big western third parties for several reasons.
Chiefly, their philosophies just don't line up. What they are interested in is different than what Nintendo is interested in when they make games. On the flip side, a lot of indies are probably more like Nintendo than anyone else in terms of development philosophies. iOS and Android didn't need the likes of EA, Activision, or Take-Two in order to succeed. If Nintendo could actually make a really successful platform again and make it as easy as possible for smaller developers to jump on, maybe some new hit makers could grow on their platform.
Also, yes it sucks that Nintendo lost a lot of their western studios, but even with them and with the Lincoln strategies, could they really have competed against the likes of Bethesda, BioWare, Rockstar, Activision, Bungie, and Epic for the hearts and minds of western gamers? Could a Perfect Dark 2 really have competed against Halo? Could other prospective future games from Rare, Left Field, or Factor 5 have competed against the likes of GTA III or Oblivion? Could they have really competed with Microsoft for the hearts of all those western developers who came down from the PC space? I don't think so. At best they'd be where Sony is now -- with a bunch of satisfactory western franchises, but nothing on the level of Microsoft's support.
After the N64 happened, there was no beating Sony in the Japanese market until they fucked up with the PS3's launch. Since 2001, there's been no beating Microsoft in the US and UK. In that sense, I think it was right that Nintendo essentially gave up trying to compete directly with Sony and Microsoft, but it seems like Nintendo is still trying to directly compete with them for the hearts of third party developers.