Usually, Nintendo is the type of company that doesn't care about what others are doing and is doing it's own thing. (sometimes that can be a bit frustrating for the fans tbh)
But this was not always so.
For example in the 16-bit era they were pretty competitive to Sega.
They used to make "Mode 7 graphics" (Mario Kart), "3D polygon graphics" (Star Fox) and "pre-rendered graphics" (Donkey Kong Country).
Of course, graphics was not everything but boasting about it was one way to fight the competition (which had seen many addons like CD drives, graphics enhancing addons, ect.).
This praxis was even more visible in the 3D era, and despite them doing their own thing, they were also trying to steal attention from the competition.
With the Wii, this changed as they got this "doing own business" thing again.
But with the Wii U, it now seems they opened the door to competitiveness once again.
Besides boasting about "new ways to play" they also boast about "better graphics" and are securing exclusives like Bayonetta 2.
But that's not enough if they want to go against MS and Sony.
They would have to make some games that would directly try to rival those that MS and Sony offer and do some aggressive marketing.
So what do you say - would you like to see a Nintendo's answer to Uncharted/GeoW (perhaps starring Indy), GT/Forza (apparently, "project GP" is in the works and is supposed to be a realistic sim made by the people that were behind PGR), Halo/KillZone (ZombiU is not enough; They would need something the caliber of Timesplitters, with a great multi-player) and so on?
I find the idea interesting but I'm not so sure about it.
After all, if those games turned out 2nd rate - who would be willing to bother with them?