Nintendo has to radically change in order for this to work.
No one is going to buy cutest Nintendo mascot stuff that does things worse than competitors or does t look and function "cool"
They will be competing against Apple and Samsung. They can beat Samsung. But will anyone be able to look past the company that Makes Kirby and see how awesome their product is?
The answer is actually YES. But... Only if they radically re image. New faces, new marketing, new strategy, way new industrial design. Massive investment in areas like software dev teams, server farms, machine tooling equipment, etc.
It's a cutthroat world now. You've got companies like apple innovating even in areas that aren't theirs-like creating new tools to make smaller components which in turn yield thinner products, etc. then you've got companies like Samsung who steal your tech and largely get away with it. And since Nintendo is japsnese and Samsung is Korean that would get real bad real quick (.look up the history between these nations).
Nintendo is in real danger of just becoming a "me too" company if they aren't careful. And as Microsoft and Nokia are finding out, there isn't room for they strategy anymore.
But Nintendo has never been a me too company. The only problem with that is they sometimes create a worse product just to be different.
If they can really make a go, reinvent (while retaining the good stuff), and reorganize in order to produce superior products that people want and possibly need, go for it.
But it's difficult seeing the current staff as competent for such a thing.
Iwata is good. He's trying to be flexible, open, and visionary. At the sane time he lacks vision. Noes the time for him to surround himself with people that can bolster his goals.
Looking forward to see what results.
Huh. You know, after reading Iwata's goals and your post I realized something. Nintendo sees them in the videogame space for the long haul. Microsoft and Sony have other divisions that can swallow losses when launching new hardware. They are a much bigger company than purely videogames, and that is what has allowed them to have the cash and resources to make good, higher spec gaming machines. Microsoft and Sony are bigger companies with a diverse range of products that allow them to afford it, and Iwata wants Nintendo to be the same way, but with different products. From what I'm gathering, he wants Nintendo to be seen as THE entertainment company 10-15 years from now. There were rumors of a Nintendo theme park a while back. This QOL thing. Nintendo could be looking for other sources of income so they can throw the kind of money into gaming machines that the other two companies are.
I'll be the first to admit this is of course slightly too optimistic, but it kind of makes sense.