Everyone is trying to make the all media entertainment box in one excluding Nintendo with the Wii U. Apple TV, things by Google(I cannot remember what it is called). Even Valve is looking to make an all in one entertainment device. The Wii U does not attempt this comparitively at all.

Idk... my impression Xbone was doing what smartphones/tablets do but on a larger scale.

In OP I mentioned that the U had the idea of fantasy leagues and TV interactivity, as well as the ability to switch contexts and message friends while in game, above already offering netflix. How is Nintendo not participating in the all in one box vision?

To point out, I also thought that what Microsoft is doing is the same thing Nintendo did with the Wii. Basically catering to the non-gamers. but yeah, I keep forgetting about Microsoft not being just in the gaming industry, so yeah, the tablet/smartphones is also to be considered which now chimes in about the restricted indie-developers comes into question.... :/

I beg to differ (though thanks for posting). If the interactive, organic and responsive nature of the iPad is any indicator, the seamless experience MS is introducing to the living room is something that I believe would interest consumers, putting games in their proper place, as secondary in the living room. It is a viable positioning and will target its audience effectively (the mainstream). To me it makes perfect sense.

If this packaged service comes at a subscription price but people consider it worth their money for being on demand and hassle free, simple, intuitive, I believe this could be the next big thing.

Games are niche, they will always be niche. What the One does is push the xbox brand into iPad territory, and that's big.

Based on its presentation, I don't think Microsoft is paying any attention to Nintendo.

According to what I've seen and experienced, Wii U is primarily a video game player with a social network, some multimedia applications, and Nintendo TVii, which allows users to scan all television/movie sources at once.

Xbox One seems to be primarily a multimedia hub that streams TV, movies, sporting events, and video games.

I think that Nintendo wants the Wii U to be unobtrusive in the living room, whereas Microsoft wants the One to replace everything else in the living room.

No, Microsoft's main rival is Apple and Google. Both those companies are working on their on TV offering, and so Microsoft needed to do something to stop them. Its quite smart if you think about it, because they are marketing Xbox One as something that you can play games on, watch TV on, and many other things. This just makes it tougher for Apple and Google's TV products to sell. 

So what about the U that offers similar features, what about those?

It seems the points in OP aren't being addressed.

I lol'ed.

"Games are niche"?

What kind of definition are you trying to use here? The number of people who play video games is not "niche" by any stretch of the imagination. The revenue brought in from the industry is not "niche" either. What are you trying to say?