I suspect it is too late for Microsoft to target Nintendo. It is happening the other way round.
If you look at the announcement of the Wii TV channel, it makes an odd reference to "Wii-ready TVs". This suggests to me that Nintendo are aiming to get Wii technology embedded into TV sets. (OK, I admit right now that this is rampant speculation on my part, but it is at least possible).
If this is true then:
a) it is something that neither MS nor Sony can do, as their kit - nice though it is - is too big and too noisy
b) it would strike right at the heart of Sony's home technology ambitions and MS's living-room ambitions
c) it would increase Nintendo's potential market way beyond anything that we have predicted here
This would be a hugely aggressive step by Nintendo in the market, but it would have every chance of coming off.
MS and Sony should be very worried.
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