I'd say Microsoft. They're reacting swiftly to try to put out the fires they've started, and go back to their core audience once more (i.e. damage control).

Nintendo screwed the pooch even harder (twice), and their early responses were panicky attempts to throw stuff at the wall and pray something sticks. It sounds now like they're preparing to cut bait, while dropping enough stuff at the Wii U to mollify current owners. Better late than never and all, but the fact that it took so long for reality to set in counts against them.

Microsoft. Nintendo is just laying there and taking it.

While it's true that GC didn't get anywhere it's doing much better than what the WII U could ever hope for now ... This isn't about trying to hit a homerun as that is practically determined before the console generation began. This is about putting in some effort to change the image of a product.

Just because removing the kinect was an incredibly easy solution doesn't mean Microsoft didn't flat out react unlike Nintendo. If losing money wasn't an option then stagnation is even worse.

I think Nintendo wins for me. They lowered the price by $50, they had 30 cent VC games for early adopters which now cost $5 per game, most of the bundles were $300 that included a free game, heck the WWHD bundle even included the digital hyrule historia book and now, with MK8, both people that own a wiiU and newcomers are getting awarded with a free game (if they get mk8 of course)! I think Nintendo wins this one

That word is not in Iwata's vocabulary. 

The Wii U is easily in the worse short-term straights, but the X1 is on thinner ice than people think.

Nintendo is the least in direct competition, it's also easier for them to recover than people give them credit. Most gamers won't care what the console sales per week stats are; if the titles are good, they will buy. Iwata's one game could save the console statement is, even in context, excessively optimistic, but it's not entirely untrue, either. Nintendo at least has always been guaranteed the best first party support in the business.

Conversely, all Microsoft can do is cut Kinect to match price with Sony. Microsoft is struggling to keep up because if the PS4 gets too much headway, their power-parity clause will backfire and third party support will bail to make a better PS4 game.

Game over for X1 if that ever happens.

if nintendo dropped gamepad, would be an incoherence way worst than xbo dropping kinect.

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.

Microsoft amended where amendments due. Nintendo's problems aren't so simple to fix i don't think. Ever since playstation came about Nintendo became arrogant and lost its 3rd party support. Also, i think by staying with the Wii name not only have they confused customers but also lost trust in it's more loyal fans who the Wii may have been a disappointment to.

Also, the gamepad ain't the problem it was a great idea 

Reacted to what? lol. As I said in another thread Nintendo is borderline retarded when it comes to making in-generation adjustments.

They need to wait until the generation is over to understand what they've done wrong.

As I think Khan noted this is typical of Japanese business culture ... to make adjustments is to admit you're wrong and that brings upon shame, which is why its taboo to do in Japan (see: Sony being so reluctant to jettison their TV division when a Western company would've probably done so ages ago).