Pachter is on the money. Iwata is the head of a publicly traded videogame company, and right now it appears he doesn't care about the console business. Honestly, it's getting to the point of almost making no sense at all. Iwata has all these valuable assets - being his first party brands - and he isn't doing anything with them.
Besides selling the brand rights to other companies - I bet Pachter would also be content with Nintendo at least putting their games on a console that has up to date hardware that people would actually be purchasing.
More importantly - when are Nintendo shareholders going to say "enough"?