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I'd be very worried.
Just like without MS competition Sony could become a danger, so MS could without Sony. Nintendo hasn't many divisions as MS and Sony, so it must earn from HW and SW, left alone against MS it could be damaged by MS blows under the belt like selling HW with heavily loss leader price and heavy moneyhatting.
Three strong competitors is the magic recipe for consumers' interest.



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW!