I'm just speaking in general terms, Nintendo cannot function as a hardware maker by being (a distant) third place in the console race. This might have worked in the past when the portable division for Nintendo was selling like 15-20 million units a year like the GBA was and the DS was crushing, but Nintendo's portable are now on decline too. That means that console division needs to stop f*cking around and/or waiting for miracle controllers and get back to *work*.
Third place is not a tenable position for Nintendo in other words if they are serious about staying in the hardware biz.
Microsoft is only really strong in the US. Add to that the fact that their main console IP, Halo, is declining too. With NX, Nintendo needs to aim for 2nd place minimum. Sure, of coure the 1st place fantasy would be nice too, but Playstation is likely far too well entrenched and global of a brand for that to happen most likely. So lets set that aside for the moment.
But Nintendo can take MS IMO. Especially in Europe and Japan *if* they act soon and act decisively. NX should be out next year, it should be front loaded with big gun Nintendo IP, and they should push for as much 3rd party support as possible. NX should also be a large step more powerful than the XB1, leaving MS with the weakest hardware by far, and they should also anticipate MS trying to rush XB2, by making NX future upgradable.
The first year for NX is crucial, they need to come out swinging and sell a lot of units. IMO, Microsoft just isn't on top of their game now, it's time to push them into 3rd place, which may even trigger them exiting the hardware business, which for Nintendo would then give them a lot of breathing room (finally).