Well well, it seems Microsoft finally decided to break its seemingly unofficial Cease-Fire agreement with Nintendo and declare a new rise of hostilities with this new motion-capturing camera peripheral. Good. Nintendo needs a good ass-kicking at its own game to get it out of complacency mode and back into take-no-prisoners mode. I'm not convinced that this camera will actually work successfully and consistently with real games, but it is an interesting (if even more physically stupid than the Wiimote, with the flailing in the air) concept. Let's see if and how Nintendo decides to fire back tommorow.
They will. Its called Motion Plus.
You should read more into this, brood. The time for MS to reveal this camera should have been last year, a time in which the Wii was very, very popular and it was a great opportunity to steal some thunder. They didn't and decided to once again focus on Sony. Nintendo reveals Motion Plus early because they thought MS and Sony would unveil their own Wiimote concepts and steal some of their consumers away. But this didn't happen. This gave Nintendo more than enough time to work on MP some more and create more games around it.
Now God willing Nintendo WILL answer back in a big way and show some games that truly take Wii gaming to the next level and makes anything third parties create obsolete. THAT will be Nintendo's retaliation.
MS is too late. They are basically starting the race just as Nintendo is two laps ahead. The time to have answered was in 2007 and 2008. By 2009 the generation is too defined.
Not to mention that MS's other attempts at "kicking Nintendo's ass" have failed (Banjo Kazooie, Lips, You're at the Movies, Family Games etc.) so once again, I think Nintendo isn't even worried about what either Sony or MS will do because they already have an answer and both companies are struggling to figure out Nintendo's strategy.