Really, as far as HW goes, they both need to worry. Nintendo is basically doing a last ditch effort and combining their home and handheld console biz. If that fails to succeed, what are they going to do? Attempt another variation of the Wii strategy, yet again?
As for MS, the Scorpio feels like the same thing. A last ditch effort to impress the bosses that Xbox doesn't need to be spun off, sold, or just go 3rd party/PC. It's already obvious that MS is growing tired of spending money on Xbox with little impact this gen. Little to no 3rd party deals or advertising. Closing studios left and right, while also canceling 2nd party games. Moving all exclusives to help push Windows. And using E3 for the same. If the Scorpio falls flat, I expect them to really reconsider a XB2.
Of course, I don't expect either of them to disappear from gaming. Nintendo would either go 3rd party or mobile. And MS would most likely support the XBO til the end of the gen and then shift Xbox's focus over to Windows gaming. At that point, I wonder if they would keep the Xbox name or change it to Windows Game Studios, or something along those lines.
