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Iwata was born in Gifi in 1887, and Iwata Yukichi was his real name. After graduating from junior high school, he went to help with the family kimono business, but as the business declined, he went to China with the dream of reviving the business. However, he was to be disappointed in China, and after his return he turned his attention to the world of drama, and in 1908 he registered as a first term student at the Tokyo School of Drama. After his graduation in 1911 he joined the public theater group of Kawai Takeo and began to perform on stage. Iwata made his film debut at the time of the founding of Shochiku Kamata under his real name, appearing in the 1920 production Shinsei (New Life), directed by Henry Kotani. After appearing in Onna no Chikara, he played his first leading role in 1921 in Akuma no Gake. He then went on to costar with Kurishima Sumiko in the Henry Kotani directed Gubijinso (Field Poppies), also appearing with her in the satirical Shinpa films Kureyuku Ekiji, Hototogisu (The Cuckoo), Chiyodai, and Sofuren. Iwata later appeared in Shuchu Nikki (Diary of a Drunkard), directed by Kako Zanmu, and in Sendo Kouta (Ballad of a Boatman), a film that was a nationwide hit along with its theme-song, and in Minamo no Hana. After this he starred-in many films such as Eiji Goroshi (Infanticide), Umi wa Warau (The Smiling Sea), Hototogisu Roshi and Nogi Taisho, before moving into supporting roles.