Neither.
Nintendo is too focused on the kids/family market and makes often ends up shooting themselves in the foot with little third party support for MS to care too much about them. Sony can't measure up financially to MS.
They did need to "answer" the concept of casual/get-off-the-couch gaming of the Wii, but they've done that now with Kinect.
Really actually though I think MS is more looking at Apple/Google with respect to the XBox 720. Nintendo/Sony are small potatoes, MS needs to get control of the living room before Apple/Google make a move.







