Hi friends, this is a speculation thread. Yep, you're on a sales site about market analysis, and well we're gonna speculate. Anyways, on to the analysis.

After watching the xbox presentation on May 21st, here are the points I came up with, leading me to believe that Microsoft is considering Nintendo its main competition for the generation ahead:

Focus on non-gaming content & partnerships:

NFL Fantasy league:

Microsoft entered in a 400m$ partnership over 5 years with the NFL. In the process, the presentation highlighted the importance of a fantasy league that is always up to date and can be tracked while watching live football. We remember that Nintendo showed a similar type of interactive tv content in their WiiU demonstration in June last year.

Kinect 2.0 vs Nintendo's interactive market:

Also, Microsoft is expanding on its Kinect experience and made that clear at their presentation. This is direct competition to Nintendo's new highly interactive experience market that they opened once again with Wii (after some of the long-lost breakthroughs during the NES era). The kinect is being beefed for higher precision and better interaction between the human and the machine.

TV content on the console, a one-stop shop:

On top of that, Microsoft is opening the doors to some TV content, making the One a one-stop shop for the consumer. This is a direct response to some of the TV features Nintendo presented last year, and an expansion of it.

Rapid context switching:

Microsoft highlighted the importance of parallel skyping while playing a game, which was an important feature in the WiiU proof of concept video. While kinect 2.0 allows to switch from one app to another using voice command and gestures, Nintendo was showcasing offering options on the gamepad to allow users to share snapshots of where they were when they last died, and cam about it on the Nintendo cam application and ask for hints, all offering a seamless experience between their games and their communications.

The flip-side

Microsoft still competing with Sony in terms of the traditional market

With all of that, Microsoft is continuing its legacy of high-performing hardware, and is going head-to-head with Sony once again. However, we all know that Nintendo's market is the bigger one, having sold many more units than Sony and MS individually last gen. So, I believe Microsoft realized this and is leaving Sony in the dust with their increased targetting of the market that is not dedicated gamers. They got the dedicated player, now they want to challenge Nintendo on their hold of the non-gamer market and become the ultimate gaming provider, for gamers and non-gamers.

Sony might join the fray

Though this far Sony only showed their games at their unveiling, it's not far-fetched to believe that they will incorporate upgrades to the PS4 prior to launch or post launch so as to allow them to compete in the expanded market.

A bite in the butt

Some of the policies they announced or that are speculated are hurting the ears of some dedicated gamers, some of which are the inability to play games on a friends' system, having to connect once a day to the internet and a few other non-consumer friendly measures. Will this take a toll on Microsoft's competitivity with regards to the market it competes with Sony on, that of the dedicated gamer?

Take a stab at it.

I don't think Microsoft considers the Wii U as competition. I don't think Sony considers the Wii U as competition. I don't think anyone considers it as competition. Everyone seems to think it's crap.

Not Moderated (don't ask, seriously).

-Kantor

So by showing a shit load of tv related stuff that are not the main focus of Nintendo you conclude that Microsoft see them as their main competitor?? Xbone is an all in one entertainment device the wii U is a gaming console

Jim Sterling, of all people, raised an interesting point in a Jimquisition I watched the other day that Microsoft were gunning for Apple/Google with this this reveal, in their own roundabout way; and that they'd firmly left Nintendo and Sony behind.

Interesting points of comparison you've raised in the OP, though.

last time they underestimated Nintendo they walked all over them with a huge market so they should never underestimate the little company that beat the big boys with a tiny console with no HD

TV and NFL seem like natural progressions rather than a direct response to anything (Wii U's tv stuff was in response to PS360's tv stuff, and an expansion of that, if anything). Kinect was definitely in response to the Wii, but Kinect 2 exists because Kinect was so successful and not because of anything Nintendo is currently doing. That last point is interesting, and of all mentioned I think Nintendo would of had the most influence on that decision, but again it's something that probably would of happened anyway.

I could make similar arguments on the contrary, like the DVR capabilities in the X1 is a response to PS4's share button, or the PS4 controller's touch pad is a response to the Wii U's gamepad, but I think most of these things were probably conceived independently or would have been.

And I would say Microsoft is more concerned with Apple and Google than both Nintendo and Sony, like kresnik said.

No. They took notice of how Wii attracted millions of non-gamers. And now they will use that to take on Sony

The power of the casuals is strong, my friends. They come through and sweep nations, win wars! They shall not be understimated ever again.

Winter is coming...or something, i don't know.

No almost every thing I read points at it being competition to things by Apple, Google, and of course the PS4. You have a strong bias towards Nintendo Amigo and have strong, weird notions based on that.

Can you explain why? I'd prefer.