Well, the strength of Nintendo in relation to Sony and Microsoft is in their philosophical mobility. They're a smaller company, with minimal red tape and business burden outside of video games, and thus can undergo a relatively quick 180 at a moment's notice.
1.) I am not convinced Reggie is to blame for any of this. NoA has, historically, been handcuffed by NoJ.
2.) I'm perplexed as to why Nintendo has refused to more aggressively penetrate the first-person shooter or sandbox genre. I mean, what is that? Both genres blew up in the console market 2 generations ago, and Nintendo has done very little since in trying to set their own, unique mark there. No one is suggesting that Nintendo goes all western, but who thought it was a good idea to green-light fucking Pikmin 3 as a launch-window game, as opposed to something fresh or more appealing? This is a series whose games barely broke 1 million worldwide individually, and somehow it's expected to move Wii U units? Pikmin 1, Pikmin 2, Pikmin 1 Wii, Pikmin 2 Wii....someone tell Miyamoto to SHUT UP and take his pet project to the handheld.