Nintendo really isn't competing with the PS4/720 anyway so it doesn't matter that much.
The initial audience for the PS4/720 is going to be the hardcore male 16-35 year old consumer who's willing to spend $400+ on console hardware and his favorite games are things like first person shooters (Modern Warfare 4, Battlefield 4), next-gen sports game engines (NBA 2K14, Madden 25, FIFA), and more graphics driven action/sci-fi stuff like Destiny, Watch Dogs, Metal Gear Solid, etc.
This is not the crowd dying to play the next Rayman or Pikmin or LEGO City or Yoshi's Land, unless Nintendo had something like Halo exclusive, there's not a lot Nintendo can do to distract that audience from their excitement over the PS4/720.
Nintendo is really not in that market. The Wii U is designed to be more friendly for the family audience and casual players along with a little more for core players, but not to the extent of the PS4/720 which are really tailored to what that market wants. They need more of the audience that supports things like Just Dance and Skylanders and the LEGO games.
The Wii U's biggest thorn in their side is actually the PS3/360 IMO. They have many/all of the same third party games and cheaper hardware, and I think that's absolutely killing Nintendo with the family/budget/kids market. Why pay $350 for a Wii U, when you can get a 360 or PS3 for about $100 less and pick up a bunch of $20-$30 games with it? If I'm a budget concious parent (and who isn't these days), I'd probably get my kids a 360 and pick up a cheapo LEGO Star Wars or Harry Potter.
If Sony/MS drop the PS3/360 by another $50 this year, they can really squeeze Nintendo hard.