I think you don´t understand why Microsoft created the Xbox. They wanted to compete with Sony for the livingroom.
Microsoft probably doesn´t even care where Nintendo ends up this gen (of course they´d like to beat them) as long as they stay competitive with Sony. They´ll never team up.
Microsoft sees its gameconsole as a good way to get access to digital distribution of films etc. (hence very good online), not just as a gaming device.







