[Update]: Nintendo has clarified Miyamoto's original comments to Wired regarding his future with Nintendo.

A company spokesperson told Reuters, "There seems to have been a misunderstanding. He has said all along that he wants to train the younger generation. He has no intention of stepping down. Please do not be concerned."

The company also issue this statement. "Video game designer Shigeru Miyamoto's role at Nintendo is not changing. He will continue to be a driving force in Nintendo's development efforts. In discussing his priorities at Nintendo in a media interview, Mr. Miyamoto explained how he is encouraging the younger developers at the company to take more initiative and responsibility for developing software. He attempted to convey his priorities moving forward, inclusive of overseeing all video game development and ensuring the quality of all products. Mr. Miyamoto also discussed his desire to pursue fresh ideas and experiences of the kind that sparked his initial interest in video games."

While translations can sometimes be tricky, Miyamoto's original comments seem very straight forward, and in our minds, him saying he's "retiring from [his] current position," would indicate a changing role. Either way, we also wouldn't expect his influence on the company to change anytime soon.

[via IGN]

[Original Story]: In a shocking bit of news, legendary game designer Shigeru Miyamoto has revealed that he is going to step down from current position as the head of Nintendo's game design department to go back into development with a focus on smaller projects.

Speaking with Wired's GameLife blog, Miyamoto explained the big news:

"I’m not saying that I’m going to retire from game development altogether. What I mean by retiring is, retiring from my current position.... What I really want to do is be in the forefront of game development once again myself. Probably working on a smaller project with even younger developers. Or I might be interested in making something that I can make myself, by myself. Something really small."

How small is he talking? According to the interview, he's "not intending to start from things that require a five-year development time." Miyamoto is hoping that his first new project, which he hasn't started work on yet, will be ready to show off before the end of 2012.

Miyamoto is credited as one of the main creators behind many of Nintendo's most beloved franchises, including Mario, Donkey Kong, and The Legend of Zelda. Whatever his new, smaller project entails, Miyamoto states several times during the interview that he wants to work with smaller teams of younger developers.

It will be a while before we fully understand what this change means for both Miyamoto and Nintendo as a whole, but here's hoping the great game designer still has some exciting future classics in him, even if they are smaller projects.