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Well, seems the Big N has finally gotten it into their skulls that they can't keep doing what they are doing and be profitable. But a lot of these changes are going to be pretty drastic… Copy of the speech Iwata gave.

Ninendo plans on migrating from Console Based user systems to Account Based system, saying that they find it hard to rebuild consumer confidence with the console base user system each generation. This probably means after they get their Digital Distribution Service into full force; they will allow you to take your digital games from system to system indefinitely.

To accommodate the strictly digital structure, Nintendo plans on creating a system where regular buyers will get Discounts." This is likely going to take the form of a Nintendo Rewards reworking. Right now you can only use your coin to get random Nintendo swag, but once the system is put into place you can use those coins to discount your next purchase. (You thought Steam Sales where bad for your wallet; Nintendo's idea pretty much will keep a perpetual sale going ALL the time!)

Nintendo is going to be reworking their IP Policy to get their entire library of IP's more active. Nintendo is planning to make it easier to lend their IP's to external game development studios that they are on good terms with and have confidence in. However, that isn't all. They will also be branching into other markets for more Merchandise and "Other Mediums". So on top of more toys, we will also probably get to see Books, Cartoons/Anime, and Movies based on Nintendo Franchises more often.

For the most part… I am fine with the direction they are taking. Though the jump from Disk Software to Digital Distribution is a tough one, as the Xbone clearly showed us. If Nintendo doesn't screw up the transition I think it will be tremendously good for them.

Yeah I heard about this, it really surprised me (positively for once, I thought they'd never get the message). Overall, they seem to be on the right track, this can either go really well or really badly, they have some really good ideas (And Nintendo anime a possibility? I really shouldn't get my hopes up, because I'm already squee-ing like crazy). I do question their decision to bring ds games to the wii u. On the one hand, playing games like spirit tracks or phantom hourglass on the tv would be awesome, but on the other hand, the 3ds is already backwards compatible, so what's the point? I love their idea to bring demo's to mobile devices, as it will allow them to advertise their games to a wider audience, as well as encourage a few more people to buy their consoles if they see a game they like.
To be honest, this whole Wii U debacle has been nothing but a good thing when you think about it, it's opened the Big N's eyes to what gaming really is, and is helping them make changes to suit it. This never would have happened if the Wii U was a success. Suffice to say, the Ninty of the future will be nothing like the one we know now, and as a devout Nintendo fanboy, I can't wait to see how this goes. I'll try to curb my optimism though, I shared the same optimism when the Wii U launched and that sure fell through.

So wait, what's basically happening is that games will no longer be sold as physical copies? That's one thing I'd really be sad if it happened. It's physical copies that make it easier to show off what you have without turning anything on.

@Adam:

This isn't just Nintendo, the entire Video Game Industry is going to be pushing Digital Distribution over the next generation or so.

Yeah, it will be sad when physical software goes away, but if it means ultimately cheaper games though sales I am all for it.

Only digital?

Ewwwww…

To be fair, one of the main reasons I don't like the idea of going completely digital is because you could have all of your games taken away from you or restricted from using by whoever may be distributing them (you can't do that with a physical copy). Like Steam can do (I do love Steam with a burning passion though). For example, what if you got hacked and because of what "you" did on your profile (harassment, cheating, etc) and Steam locks you out of all your games? Just food for thought.

The problem that you won't get to access the games you have legally purchased after the company goes down under is very much a legitimate issue. I heard someplace that Valve's user agreement says that "If we go under, we will do something to unlock the DRM off all the games you have downloaded." (Well, at least that's what a raving Fanboy told me when I asked him. The source was sick in the head like most fanboys but I hope it's true.)

Then system security… hoo boy this is a tricky one. First of all, these companies do have the right to ban you from their servers if you are legitimately being invasive or destructive. But on the other hand, the companies also have the obligation to keep supplying you with the games you purchased…

I'd say… on the User side they would have to agree to the terms that they can only use the service if they plan on using it fairly. Software will be retained if they get banned, but the download and online service will be dead for however long. And on the Distributors Side, they must supply a proper appeal system. If any of the major distributors can't even agree to that much, boycott away!

I try to sound optimistic about this, but really it's hard for me. Xbone showed us what a single policy fuck up can be like.

I think this is a good move, but Derpy kindly linked me to this article

it should be noted they are also open to mergers and acquisitions

I personally find it hilarious that everyone is SO against digital copies, yet they only buy their PC games on Steam.

However, if they get acquired by another company, it may be the end of an era…

As long as they don't make iOS games I'll be a happy fan.

I don't think Mr. Iwata intended to say "We are going to let ourselves get bought up". I think he was more looking into acquiring other companies. (They will eventually need to if they intend of making things other than Video Games)

The big N needs to acquire Megaman from Capcom

Or just buy up Capcom Entirely. They are nearly bankrupt so an acquisition like that is not out of the question.

They should release Gamecube titles on the eShop. I am about to sell my Wii, yet I have all those GC games.