Most traditional Japanese companies were set up like this. The overseas branches are basically distribution companies who make a percentage of their revenue. They are just like any other reseller. Their only leverage is that they can make customization requests if the potential sales increase is there.

This mode has almost killed all Japanese CE companies because the rest of the global market did no longer buy in to the 'paternal' model.

Nintendo is one of the last Japanese companies working in such a mode. And because they always go against the mainstream, they may just be different enough to make it matter.