Oh this is a surprise Nintendo bashing thread? Expected nothing less from a topic with a neogaf quote and a clickbait title that wouldn't be out-of-place in that site right in the opening post.
Iwata: So [modern games] are backed by this huge amount of effort and technology, but it feels like very few people remember them [story moments] or players skip over things within the game.
Kawakami: It certainly feels like there's too many cut-scenes these days.
Iwata: Of course, you can use them effectively; I'm not trying to dismiss them completely, but I can't help but wonder what could have been instead done with the energy [time, money, resources] that went into them. Miyamoto has never used many cut-scenes, in his games, but recently I think he has begun to think the same way, too.
By the same logic, he's "hating" modern games and Miyamoto. Not useless cutscenes.
If you ever felt the need to skip the long shounen-clone No.12756 cutscenes in Final Fantasy XIII, or just skip the Call of Duty cutscenes to, you know, the actual gameplay... because -god forbid!- you thought they are shitty uninteresting writing fluff (though they probably had two or three employees working full time on modeling and scripting the event for those)...
Does that makes you someone who hates "modern games"?
"Modern games" only aspect is only 45 FMV cutscenes of:
a/ Someone speaking to Lightning while she's being all angsty and perfect immaculate hero
b/ if Lightning is not on stage - "Where's Lightning?"
Am I right?
Does Bayonetta counts as a modern game? Its cutscenes are skippable.
I guess Metroid Other M is the best modern game ever. It focused on unskippable cutscenes instead of useless gameplay.
Who in their right mind would skip the cutscenes? they're what make a modern game!
You brought "The Last of Us" I think as an example of a modern game you think Iwata is bashing? So you think he's against story elements in games?
Well:
* Iwata's achievement that has earned him the head of HAL studios position was his work on Earthbound/Mother 2, a very story-centric game. Miyamoto was crucial to the development of the first Mother game, despite it being overly story centric. They saved Mother 3 from definitive cancellation. If someone brings out localization I'll just point at Nintendo of America, both for the canned 1991 release (NoA wanting to focus on the SNES - they also delayed lots of early gen SNES games so that their first party ones stand out better) and the 2006 game (by that time NoA cancelled the Art Style and Rhythm Tengoku games to help the DS sales - Polarium GBA had to be published by Atlus in NA, Mother 3 devs on the JP side approached NoA with proof-of-concept localized builds and got denied)
* Aonuma's first game he directed that earned him the immediate respect of Miyamoto to the point he immediately gave him the Zelda series was Marvelous Another Treasure Island (JP only), a SNES point-and-click game with a heavy focus on story.
* Nintendo did tons of visual novels. They got help from anime directors even.
* Nintendo hired Love De Lic ex-devs (even paying one lots of cash while he was still working there to help with Paper Mario 1) to help with all of Mario RPGs, Chibi-Robo, plus some games that never got localized, all sharing a heavy focus on story. Love De Lic had the mindset of prioritizing story over gameplay to really excessive lengths.
* At one point in the SNES era they stepped in and offered to localize Front Mission, a videogame series written by crime live action TV show writers published by Square, that not even Square had faith in localizing it because it was "too much story and FMVs and little gameplay, too much of a military feel" (and this is coming from the company that spent millions on cutscene CGI for Final Fantasy 7). Not to be deterred by the deal falling through, they localized Terranigma and Illusion of Gaia (the decisions made by Japanese executives).
Also, Nintendo did Bayo 2, Disaster Day of Crisis, Last Story, Metroid Prime, Xenoblade, Pandora Tower... the beloved cutscenes are still there but the difference being they're better integrated to the gameplay, better written and most importantly not eating up 90% of the game budget or development time like other "modern games".