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hsrob said:
If the implications for this are potentially as broad as some people are suggesting wouldn't this be worse news for Sony and MS than Nintendo?

Nintendo has always been able to make money without loss leading and even though they would lose out on licensing fees they can still make a bundle from software. Sony and MS would have to change their console strategy entirely.

This is indeed true. The best-selling software on Nintendo's consoles are already published by Nintendo, so they wouldn't be affected harshly. However, Sony and Microsoft would lose tons of money without licensing fees from popular games like CoD, Mass Effect, Dragon Age, Metal Gear Solid, etc.