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I think Microsoft has done a better job of reacting but that's only because they screwed the launch in a much more epic way than Nintendo.

There is not much for Nintendo to do in reaction. Their bad decisions were much more fundamental than Microsoft's. Most of MS problems could be fixed pretty easily while Nintendo's problems run deep. The original Wii was a fluke/fad. The only way Nintendo could have succeeded this gen is if they came up with something as groundbreaking as the Wii. Increased power, better games, none of that would have saved the Wii U. It needed to be revolutionary to regain the mass audience and it wasn't.