Reggie thinks competitors need to react to Nintendo
“In the end, our competitors need to react to what we’re doing in the marketplace and need to figure out what their innovation will be. It’s likely that faster processors and pretty pictures won’t be enough to motivate consumers. They need to react to what we’ve done and we need to continue innovating with the Wii U and we will.
For us, launching new systems is about bringing new consumer experiences to the marketplace and we’re doing that with Nintendo land and third-party publishers are doing it with games like ZombiU. For us, now is the right time to launch new hardware.” – Reggie Fils-Aime
Both Sony and Microsoft reacted to the Wii by releasing their own motion controls. One can say Microsoft has already reacted with Smart Glass. Everyone always reacts to someone else. It is part of any business.