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Yeah... Nintendo was too slow to admit defeat and salvage the situation. But the truth is, the high price was the result of the investment on the gamepad, wich hasnt really payed off yet.

The thing is, i think the Wii U only becomes appealing at 250. Still the biggest problem is the software library. Nintendo is still beeing too slow to rectify the situation. We can only wait and see what it is they want to do.

As for Microsoft, they have the kinect slowing them down, aswell as the goodwill they lost at the end of the previous gen and with the unveiling of the X1. That and they no longer have Sony making mistakes with the Playstation 4.
The Xbox surely built a brand in the US, but Europe and Japan are still very much Playstation oriented to an extended degree where its gonna be difficult for Microsoft to change the situation.
They need to recover goodwill, and like Sony showed them last cycle, its not something that comes from one year to the other. Its gonna be an uphill battle for Microsoft this gen. I guess the gamers benefit if Microsoft is willing to fight that battle.