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I dont think Sony and MS are too worried right now they still have good sales and make a loss on every machine sold so they hardly want to sell more anyway.
PS3 has built in motion sensing already - if Sony actually used the motion sensing more i would not have to buy a Wii next year !.
I think the real wake up for PS360 HD consoles will come once nintendo firmly take a lead of over 50% of installed consoles sometime next year - there is nothing MS-Sony can do to stop this happening now.
Software vendors are now realising that to ignore the Wii is to loose a huge market.
Once Nintendo are over 50% more vendors will shift primary game development to the Wii based on it's huge user base and treat the old HD consoles releases as a secondary priority.
Wii is set to have an install base of around 100million units by 2010, and the software vendors just now are realising that fact the PS360 consoles are going to come out second best.

I should also point out that nintendo has a draw card that neither MS or Sony can ever match - Nintendo can bring out a True HD Wii console by 2010 which will make the PS360 look like relics of the past - i expect a quad core 4Ghz Power PC, 2 gigabyte memory and 8*BD drive & most importantly 100% backward compatability and a WiiMote V2.
MS-Sony can hardly counter Nintendo by terminating their existing consoles which are struggling to make a profit they will write off the PS360 as a huge loss (like MS did with the old Xbox) Nintendo own;s this gen and will dominate the next generation of consoles too.



PS3 number 1 fan