I have said this since the One's DRM policies came to light: the system will almost certainly be a great system...two years after launch when Microsoft retracts the DRM.
At the moment, it's impossible for Microsoft to "take out" either Sony or Nintendo.
Nintendo is doing quite well in the handheld space: the 3DS is the current best-selling console, and has reliably held three of the best-selling titles for six months now. Even if the Wii U doesn't do remarkably, Nintendo will probably still break-even on it with just their first-party IP's, and then come next generation with diminishing graphic returns, you will literally not be able to distinguish graphics from a Nintendo console, and a MS/ Sony one. Only a developer's chosen art-style.
Conversely, Sony has a huge advantage over Microsoft: simple internal architecture. Developers will naturally gravitate toward this because it has no eDRAM or eSRAM or huge CPU caches like either the One or the Wii U. The stuff developers will develop for is a CPU, a GPU, and a big chunk of really fast RAM. There's almost no need to optimize the code for the platform: mash compile, and you're golden. Come late-life, that's going to come into play. And then there's the DRM: gamers without internet are relatively uncommon, but they do exist and Sony will now collect almost all of them.
Microsoft may do well out of the gate, but if I had to guess, I think both Sony and Nintendo's consoles have better long-term potentials.
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