People tend to forget how much Nintendo revolutionized home gaming, and how they virtually saved the industry single-handedly in the 80’s.
And while Xbox and Playstation are at each other’s throats, Nintendo’s kind of just doing its own thing, catering to its own niche market. It’s not a threat, stop treating it like one. Nintendo’s successful because it isn’t fighting for attention. It just do what it do and it do it well.