Ask any video game insider about the future of gaming and they'll quickly point to Facebook blockbusters like Farmville and mobile hits like Angry Birds.
At Game Developers Conference, Iwata shrugged off the success of social and mobile gaming saying: such titles are bad for business as they promote quantity over quality, and the increased interest in these platforms will threaten their very livelihoods.
"Long-term, Nintendo is doomed," analyst Michael Pachter told All Things Digital. "[Iwata]'s under full frontal assault by Apple."
"[Iwata] may be right, but then the 200 to 300 million people who play games on Facebook are wrong," said Jeff Brown, the VP of corporate communication for Electronic Arts.