Five of the top ten best selling franchises in home console history are exclusive to Nintendo -- Mario, Zelda, Smash Bros., Mario Kart and Wii Fit. Molina said they need to get their stars out front.
"Nintendo isn't just coming out with rehashes of the same game. They're doing more to make sure these games are original," Parker said. " 'Super Mario Galaxy' was one of the best franchises on the Wii. They can keep reusing the same characters if you ask me, as long as they keep coming up with new ways to play."
In addition to the looming shadow of its competitors' new consoles, Nintendo has also contended with the rise of smartphone gaming as a potential threat to its handheld Nintendo 3DS console. Iwata says he's not concerned.
"There are a number of people who have watched the spread of smart devices today who are concluding that handheld gaming devices would not have a future at all," Iwata said. "(But) a number of trade people, retailers and distributors, are visiting the E3 show right now, and I understand they believe the potentially biggest seller for them this year ... is going to be Nintendo 3DS."
According to Nintendo, 3DS software sales of first-party titles in countries such as France, Germany and Belgium are driving hardware sales as well. The company is projecting sales of 1.8 million hardware units and 8 million software units for the 3DS in the next fiscal year.
"Nintendo should be thankful for the success of the 3DS," Parker said. "They have managed to turn that handheld around since its dark beginnings, and it has become quite a success for them."
"Whether it happens with Wii U remains to be seen," Molina added.
Again, it all comes back to games. But is it too late to get people's attention? Iwata says no, and is ready to back it up with action.
"Starting from this summer, Nintendo is preparing for a very strong first-party software line-up that people really want to try out. By selling the software, we'd like to expand the hardware sales of the Wii U system. That's our message."