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First of all, Nintendo has done very very well for themselves and they deserve the recognition that they are getting.

Microsoft on the other hand, couldn't be doing worse. For a highly profitable company, they are doing pretty bad with their console-based gaming. I don't think that they will even put out another console after the 360 is over and done with (in 4-5 years).

Of course, this reduced amount of competition will add to the amount of profits that both nintendo and sony will bring in, but will probably end up helping Sony more, simply because the 360 vs the PS3 are more of a substitute and seek to go after gamers more similar than in a PS3 vs Wii comparison.